We need them to ban unregulated vapes and just let those that pass the test remain then see this soar! |
2900 works for me |
Fund managers I assume are fuming at the CEO.But it's a cash cow and according to this analyst the dividend is safe.I expect it to be raised next year.https://www.barrons.com/amp/articles/altria-stock-dividend-yield-876e1be6 |
 HL’s Clayton sees BATS growth expectations go up in smoke
British American Tobacco (BATS) is suffering under the weight of unregulated disposal vapes in the US, which has added to its woes around growth, says Hargreaves Lansdown manager Steve Clayton.
Clayton holds the Citywire Elite Companies AAA-rated stock in his HL Select UK Income Shares fund, where it makes up 4.2% of the £143m portfolio, and his £290m HL Select UK Growth Shares fund, where it is 3.7%.
He noted the tobacco giant has lowered earnings expectations over the next few years as it suffered a £25bn write-down in its traditional tobacco assets in the US.
However, it is not just in traditional tobacco where it is suffering.
‘North America is witnessing a wave of cheap, unregulated disposable vapes flooding the market, taking demand away from conventional tobacco and big tobacco’s expensively developed portfolios of next-generation brands,’ said Clayton.
‘BATS confesses to some weak execution in its heated tobacco segment on top.’
Clayton said this all adds up to a ‘reduction in its growth expectations in the near term’ and it will be 2026 before it is back to mid-single-digit profit growth. |
RBC cuts British American Tobacco price target to 2,900 (3,500) pence - 'sector perform'
UBS cuts British American Tobacco price target to 2,900 (3,800) pence - 'buy' |
Round two!! these random burst upwards (sometime see as fixed size AT trades) been coming in for weeks, shorts covering and funds running for exdiv.. looking great here in the last 24 hours. Nice that the update is out the way... |
PM's debt is $47.8bn after the Swedish Match takeover.....hardly peanuts |
PM have just announced a $1.30 divi for this quarter after all......Will PM or Altria announce a similar write down with their US brands? |
I think this CEO has done enough kitchen sinking in the update from yesterday.I don't see any need for a dividend cut at this moment when NGP has just broken even in 2023 and moving into profit in 2024. |
we will see??? |
it looks like the market is pricing in a cut in the dividend.£35 to £23 fall in the share price in a year says a lot about what the market thinks about bats debt load as well |
Thanks, just looked it up. Very funny |
A weeks paypacket |
ValueHurts: I cannot believe you would advocate selling the ITC stake to then sqiander those proceeds on a share buy-back. Incredible. |
India now has the worlds largest population, having surpassed China. There is huge potential to eventually replace popular but carcinogenic chewing tobacco with tobacco-free oral pouches. BAT need not rush to sell.
Meanwhile, Chief Strategy and Growth Officer Kingsley Wheaton has just bought 1199 shares at 2294p for a total of £27,505, with associate Julia Wheaton making a similar sized purchase. |
I think selling ITC is not the answer. This at least gives them divestments from actual business and focus in India which is a growing massive market. Focus on the costs and the strategy for revenues over next 2-3 years is the key. Not what could happen in 10-30 years. Their cash flow is enviable to the world so need to use their strengths to maintain margins |
Hopefully they can sell the ITC stake but who would be able to buy it? If they could we could clear a massive chunk of debt and get those buybacks going. My thoughts are that they are unable to sell. ITC is a conglomerate these days with property, packaging etc. well away from its core business. 28p/e and poorly run. |
She's revving up nicely... |
Matt, arguably more of a swing trafe now than a longer term investment.
It's worth paying a visit to a Vape shop (yes they do exit) to see the vast range of offerings by so many different companies.
Or a quick web search will show the same results. |
Not really surprised by those figures above.
Agree that until Feb we are at risk of going lower as this news gets digested by more holders and also if the general market has a pull back too.
Longer term though I think these current prices will turn a great return both in terms of a dividend, even if it gets a cut, and also in share price appreciation.
Good luck all 👍🏻 |
Goldman Sachs cuts BAT price target to 2,700 (2,750) pence - 'neutral'
Barclays cuts BAT price target to 2,650 (3,200) pence - 'overweight' |
I guess that a major part of the write-down is goodwill arising from taking over other companies in the past. Goodwill is part of the cost of acquisition and is not taxable. Any physical assets will be allowed for taxation within existing laws and time frames and will therefore not make any difference either as the rates of depreciation used by companies are not necessarily the same as the rates of capital allowances. |
Early yet but futures have BATS ADR down only another 0.42%
Could even turn positive, which might lift us to £23 |
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