In a report released today, Rashad Kawan from Morgan Stanley maintained a Sell rating on British American Tobacco (BATS – Research Report), with a price target of p2,650.00.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Rashad Kawan has given his Sell rating due to a combination of factors impacting British American Tobacco’s performance. Despite the recent positive momentum of Velo Plus in the US market, its contribution remains minimal, accounting for only about 1% of BAT’s 2024 US sales.
The decline in household penetration across BAT’s other US products, including e-cigarettes, traditional oral products, and combustibles, further exacerbates concerns. This overall weakness in BAT’s portfolio suggests that the gains from Velo Plus are insufficient to counterbalance the broader challenges faced by the company.