British American Tobacco Q2 Preview: Rich Yields And Growing Bullish Support - Reiterate Buy

Summary

• British American Tobacco's H1'24 Pre-Close Trading Update has revealed "H1 delivery in line with our expectations," with H2'24 likely to be even better.
• Much of our H2'24 optimism is attributed to the Vuse market leadership, as the management also tapped into the nicotine-free single-use vaping market in the US.
• At the same time, BTI's Velo may benefit from PM Zyn's nationwide shortage through the end of 2024, potentially triggering new growth opportunities in the oral tobacco segment.
• The stock remains inherently discounted compared to its peers, despite the New Categories growing bottom-line contribution ahead.
• With BTI set to announce their H1'24 financial results on July 25, 2024, we shall also highlight a few metrics readers may want to look out for.

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BTI's Investment Thesis Remains Tempting As We Enter H2'24

We previously covered British American Tobacco p.l.c. (NYSE:BTI) in April 2024, discussing its robust FY2023 financial metrics as the New Category segment achieved the first year of positive

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

The analysis is provided exclusively for informational purposes and should not be considered professional investment advice. Before investing, please conduct personal in-depth research and utmost due diligence, as there are many risks associated with the trade, including capital loss.