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Actionable news in RAI: REYNOLDS AMERICAN Inc,

Reynolds American (RAI) Stock Downgraded at RBC

NEW YORK (TheStreet) -- Reynolds American (RAI - Get Report) stock was downgraded to "outperform" from "top pick" at RBC Capital Markets, which increased its price target to $53 from $50.

The tobacco company's shares have nearly doubled since they acquired Lorillard last year for $27.4 billion, leading to an increase in earnings guidance and making the stock slightly overvalued, RBC said in an analyst note.

"We continue to recommend investors buy RAI shares, as we believe there is still room for some EPS upside to current consensus estimates," analysts added.

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Pricing trends are expected to remain steady through 2016, which could help falling sales of value brands, such as Pall.

The Newport brand, which was acquired with Lorillard, could also make up for weaker sales from other brands, analysts noted. Newport volumes increased 3% for the latest quarter.

Reynolds American stock is...