- Argus Research upgrades British American Tobacco (BTI -0.4%) to Buy from Hold with an eye on the Reynlds American acquisition.
- Argus on BTI: "The acquisition, which is expected to close in 3Q17, will increase BTI's exposure to high-growth emerging markets while also strengthening its presence in the U.S. It will also help BTI to expand its R&D program, which is focused on the of e-cigarettes and other smokeless products, and to boost its share of the smokeless market. Management plans to quadruple the number of markets in which it offers e-cigarettes and other smokeless products by 2018. We believe the near-term outlook for British American has improved and see further upside for the shares."
- The firm assigns a price target of $72 on the tobacco stock vs. a 52-week trading range of $52.71 to $65.67. The ADRs traded as high as $63.13 today.