British American Tobacco: Gushing Cash And Finding New Growth Catalysts
Summary
- We upgraded British American Tobacco to a 'Strong Buy' in January, and since then, the stock has crushed the market.
- Despite returning more than 40% YTD, BTI still appears undervalued, trading at 8x EPS with potential to reach 10-12x EPS and $50-60 per share over the medium term.
- The Company has shown significant growth in smokeless products, with modern oral products like Velo gaining market share - especially outside the U.S.
- We rate BTI a 'Buy'.
_IB_/E+ via Getty Images
In January of this year, we upgraded British American Tobacco (NYSE:BTI) to a 'Strong Buy' rating.
In our article, titled "British American Tobacco: 15%-24% Annualized Potential Upside From Now Until 2028", we argued that the company was unfairly
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