Professional
Added to YB: 2024-06-14
Pitch date: 2024-06-06
BTI [bullish]
British American Tobacco p.l.c.
+123.42%
current return
Author Info
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Company Info
British American Tobacco p.l.c. provides tobacco and nicotine products to consumers in the United States, Europe, Latin America, Canada, the Asia-Pacific, the Middle East, Central Asia, Caucasus, and Africa.
Market Cap
GBP 94.2B
Pitch Price
GBP 27.30
Price Target
49.00 (-20%)
Dividend
5.64%
EV/EBITDA
9.29
P/E
12.44
EV/Sales
4.91
Sector
Tobacco
Category
value
British American Tobacco p.l.c.: First-Half 2024 Shaping Up Within Expectations; Shares Very Undervalued
BTI: H1 '24 in line w/ low-single-digit org rev & adj profit growth guidance. Shares v undervalued at 12x '24 PE, 10x EV/EBITDA, 8% FCF yield, 6% div yield. US share gains to accelerate in H2 from actions. Focus needed on FCF & capital allocation; ITC stake sale will fund £1.6B buybacks. NGP rev target of £5B by '25 ambitious given slower heated tobacco adoption & competition. Bears cite lagging PMI in heated tobacco & NGP margins. Wide moat on addictive product, marketing bans, brand loyalty, scale cost adv. 20yr excess ROIC likely on pricing power. FVE $49. Med uncertainty.
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