Stock of the Day

British American Tobacco (BTI)

$47.70

+$0.26 (+0.5%)

Market Cap: $98.62B

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 around $44.60, which may present a buying opportunity for investors looking for value.
• British American Tobacco p.l.c. has received a consensus rating of "Moderate Buy" from analysts, indicating positive sentiment towards the stock.
• The company has a strong market capitalization of approximately $92.20 billion, suggesting stability and a solid position in the market.
• With a price-to-earnings (P/E) ratio of about 9.16, the stock may be considered undervalued compared to industry peers, potentially offering good returns.
• British American Tobacco p.l.c. is diversifying its product offerings, including modern oral nicotine products and vapour products, which could attract a broader consumer base.

British American Tobacco Bear Case

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

• One analyst has rated the stock with a sell rating, indicating some skepticism about its future performance.
• The company has a debt-to-equity ratio of 0.65, which suggests a moderate level of debt that could impact financial flexibility.
• Despite a strong market cap, the stock has experienced fluctuations, with a one-year low of $30.01, indicating potential volatility.
• There is a growing trend towards reduced tobacco consumption globally, which could affect long-term sales and profitability.
• Analysts have set an average target price of $33.00, which is significantly lower than the current stock price, suggesting limited upside potential.

Recent News

• British American Tobacco price target raised to 3,750 GBp at Barclays (msn.com)
• British American Tobacco: Positive Trading Update, Upgraded Outlook (seekingalpha.com)
• British American Tobacco Ups Guidance: Stock Still Appears To Be A Bargain (seekingalpha.com)
• British American Tobacco p.l.c. (BTI) Q1 2025 Sales/Trading Statement Call Transcript (seekingalpha.com)
• British American Tobacco Raises Outlook on Better-Than-Expected Revenue (wsj.com)
• Want Safe Dividend Income in 2025 and Beyond? Invest in the Following 5 Ultra-High-Yield Stocks. (fool.com)