British American Tobacco (BATS)

Sector:

Tobacco

Index:

FTSE 100

2,406.00p
   
  • Change Today:
      17.00p
  • 52 Week High: 3,007.00
  • 52 Week Low: 2,279.50
  • Currency: UK Pounds
  • Shares Issued: 2,234.09m
  • Volume: 2,865,383
  • Market Cap: £53,752m
  • RiskGrade: 122

Barclays lifts BAT price target, says stock is cheap

By Michele Maatouk

Date: Monday 10 Jan 2022

LONDON (ShareCast) - (Sharecast News) - Barclays lifted its price target on British American Tobacco on Monday to 3,400p from 3,300p, arguing that the shares are at an inflection point.
The bank, which maintained its 'overweight' rating, said BAT has been a frustrating stock to own over the last three years, with a total return of around 41% versus 50% for the MSCI World Staples Index. However, Barclays reckons this is about to change due to two catalysts.

"First, BAT will start repurchasing shares soon - we think BAT could repurchase circa £10bn in shares by FY25 (c15% of market cap) and still see net debt/EBITDA decline from c3x in FY21 to c2x by FY25.

"Second, BAT will now start breaking out NGP (next generation product) contribution losses; we think these are c$1bn today."

Barclays noted that BAT has guided for NGP to break even by FY25.

"As NGP losses reduce and share repurchases step up, BAT's earnings per share growth should accelerate from 6% in FY20/21 to 9% in FY22/23E, and 10%+ beyond FY24E," it said.

Barclays said that at 8% dividend yield and 7.5x 2022E price-to-earnings, the stock is cheap.

Email this article to a friend

or share it with one of these popular networks:


Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

BATS Market Data

Currency UK Pounds
Share Price 2,406.00p
Change Today 17.00p
% Change 0.71 %
52 Week High 3,007.00
52 Week Low 2,279.50
Volume 2,865,383
Shares Issued 2,234.09m
Market Cap £53,752m
RiskGrade 122

BATS Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
77.51% above the market average77.51% above the market average77.51% above the market average77.51% above the market average77.51% above the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Price Trend
34.51% below the market average34.51% below the market average34.51% below the market average34.51% below the market average34.51% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Income
97.48% above the market average97.48% above the market average97.48% above the market average97.48% above the market average97.48% above the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average
Growth
73.78% below the market average73.78% below the market average73.78% below the market average73.78% below the market average73.78% below the market average
100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average100.00% above the sector average

What The Brokers Say

Strong Buy 5
Buy 3
Neutral 3
Sell 1
Strong Sell 1
Total 13
buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

BATS Dividends

  Latest Previous
  Q1 Q4
Ex-Div 21-Mar-24 21-Dec-23
Paid 02-May-24 01-Feb-24
Amount 58.88p 57.72p

Trades for 28-Mar-2024

Time Volume / Share Price
16:42 4,784 @ 2,406.00p
16:35 1,184,395 @ 2,406.00p
16:35 554 @ 2,406.00p
16:35 554 @ 2,406.00p
16:35 554 @ 2,406.00p

BATS Key Personnel

CEO Tadeu Marroco
Chair Luc Jobin

Top of Page