Morgan Stanley Starts British American Tobacco (BTI) at Overweight, 'We forecast >£5bn in NGP revenues by 2025'

(Updated - November 1, 2023 5:29 AM EDT)

Morgan Stanley analyst Rashad Kawan initiates coverage on British American Tobacco (NYSE: BTI) with a Overweight rating and a price target of $38.00.

The analyst comments "We see BAT's user base continuing to grow globally, driven largely by growth in its NGP portfolio, particularly in US vaping, which could offset weakness in the US cigarette market and a potential flavour ban on its combustibles portfolio (e.g., US menthol). Our rating reflects strong near-term earnings visibility in an uncertain environment. We estimate ~7% EPS CAGR over 2023-25. We forecast >£5bn in NGP revenues by 2025 (in line with BAT's £5bn ambition by 2025). We see an opportunity for a re-rating in BAT's multiple as it demonstrates sustained success and share gains across its NGP portfolio, narrowing the gap to best-in-class peer PMI."

For an analyst ratings summary and ratings history on British American Tobacco click here. For more ratings news on British American Tobacco click here.

Shares of British American Tobacco closed at $29.86 yesterday.

You May Also Be Interested In

• Tesla plans 'flying' Roadster stunt at SpaceX Texas site as early as August
• Diana Shipping drops bid for Genco after price demands spike to $36.91
• Vivos Therapeutics posts 35% revenue gain but widens net loss