British American Tobacco: Time To Take Profits?

Fundamentals First
251 Followers
(12min)

Summary

  • British American Tobacco has re-rated materially from a sub 6X P/E to a current P/E of 10X.
  • Returns based on management guidance look relatively unexciting, but there’s more to the story.
  • Turning the tide on illicit disposables in the U.S. and exciting prospects for Modern Oral could provide multi-year tailwinds for growth, boosting earnings above management guidance.

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British American Tobacco (NYSE:BTI) (OTCPK:BTAFF) is one of the world’s largest tobacco companies, operating in over 180 countries. Although historically a combustible cigarette business, the company is increasingly diversifying its revenue mix into next

This article was written by

251 Followers
I am an equities analyst based in South Africa, with focused coverage on the South African equity market. I have ten years experience working as an analyst at three prominent South African fund managers. I am also a CFA Charterholder.

Analyst’s Disclosure:I/we have a beneficial long position in the shares of BTI either through stock ownership, options, or other derivatives. 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.

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