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British American Tobacco stock retains Buy rating

EditorAhmed Abdulazez Abdulkadir
Published 06/10/2024, 05:13 AM

On Monday, Jefferies maintained a Buy rating on British American Tobacco (NYSE:BTI), with a steady price target of £34.00. The firm anticipates a stronger performance in the latter half of the year, particularly due to the Reduced-Risk Products (RRP) segment. This optimism is further supported by the expectation of a June approval for the company's tobacco product marketing application in the United States.

British American Tobacco, listed on both the London Stock Exchange (BATS:LN) and the New York Stock Exchange (NYSE:BTI), has been subject to scrutiny after its first half of the year guidance sparked doubts about the feasibility of its second-half targets. However, Jefferies expressed confidence in the company's ability to deliver improved results in the second half of 2024.

The firm's confidence is partly based on the anticipated June approval by U.S. regulators of British American Tobacco's tobacco products. This approval is expected to positively influence investor sentiment and the company's stock valuation.

Jefferies also pointed to the robust performance of British American Tobacco's business outside the U.S., noting a valuation gap that suggests further growth potential. The analyst's commentary underscores a belief in the company's prospects, citing the strength of its international business as a key factor.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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