Stock of the Day

British American Tobacco (BTI)

$37.80

-$0.76 (-2.0%)

Market Cap: $79.94B

About British American Tobacco

British American Tobacco p.l.c. engages in the provision of tobacco and nicotine products to consumers worldwide. It also offers vapour, heated, and modern oral nicotine products; combustible cigarettes; and traditional oral products, such as snus and moist snuff.

The company offers its products under the Vuse, glo, Velo, Grizzly, Kodiak, Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Camel, Natural American Spirit, Newport, Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, State Express 555 and Shuang Xi brands. It also distributes its products to retail outlets. British American Tobacco p.l.c. was founded in 1902 and is based in London, the United Kingdom.

British American Tobacco Bull Case

Here are some ways that investors could benefit from investing in British American Tobacco p.l.c.:

• The current stock price is $38.93, which may present a buying opportunity for investors looking for value in the tobacco sector.
• British American Tobacco p.l.c. has a strong dividend yield of 7.62%, providing a steady income stream for investors. The company recently announced a quarterly dividend of $0.7391 per share, reflecting its commitment to returning value to shareholders.
• Recent upgrades from analysts, including a "buy" rating from UBS Group, indicate positive sentiment and potential for stock appreciation.
• The company has diversified its product offerings to include modern oral nicotine products and vapour products, aligning with changing consumer preferences and potentially capturing new market segments.
• Institutional investors have shown increased interest, with several funds acquiring new positions or increasing their stakes, suggesting confidence in the company's future performance.

British American Tobacco Bear Case

Investors should be bearish about investing in British American Tobacco p.l.c. for these reasons:

• The company has a debt-to-equity ratio of 0.60, which indicates a moderate level of debt compared to equity. High debt levels can pose risks, especially in volatile market conditions.
• Recent downgrades, such as the "hold" rating from StockNews.com, suggest that some analysts may have concerns about the company's growth prospects.
• With a current ratio of 0.88, British American Tobacco p.l.c. may face challenges in meeting its short-term liabilities, which could impact its financial stability.
• The tobacco industry faces increasing regulatory scrutiny and changing consumer attitudes, which could affect future sales and profitability.
• Market competition is intensifying, particularly in the nicotine alternatives sector, which may pressure British American Tobacco p.l.c.'s market share and margins.

Recent News

• British American: Total Shareholder Yield Justifies Holding Despite Slow Growth (seekingalpha.com)
• British American Tobacco price target lowered to 2,650 GBp from 2,700 GBp at Morgan Stanley (markets.businessinsider.com)
• 2 Glorious Dividends To Retire In Style, Yields +7.5% (seekingalpha.com)
• British American Tobacco: My Largest Traditional Stock, This Is Why (seekingalpha.com)