British American Tobacco Share Discussion Threads

[keisersoze] 19/12/2019 11:10

Not sure if this has been mentioned before, there's a very good podcast on Freakonics dated 20 Nov - The Truth about the Vaping Crisis. Well worth a listen...

Meanwhile, the price action here is looking very positive.

[eeza] 18/12/2019 21:26

XD is 24 Dec (not Dec 27) because of Xmas.

[karateboy] 18/12/2019 19:35

Ex dividend dade is 27th as I remember. It is good to bank another 51p per share.

[redbaron10] 18/12/2019 15:48

52-week high here.Keep going.

[stepone68] 16/12/2019 13:12

Hi Chucko, there will be more detail in the note. Although I'm pretty sure targets based solely on momentum do just as well as those formed by fundamental analysis.

[simba_] 16/12/2019 12:42

I certainly don't pay much attention to those targets. Not sure anyone does. But price tends to move in whichever direction the target is. And in this case and for now, its a positive.

[chucko1] 16/12/2019 11:42

But why believe the 3400p? - it’s not as though the original 2500p had much longevity. These are supposed to represent medium to long term targets, not trading targets.

[crossing_the_rubicon] 16/12/2019 11:09

Fandabby dozey

Double upgrade.
Nice rise.
:)

[simba_] 16/12/2019 11:04

British American Tobacco received a double upgrade to buy from underperform at Bank of America, which lifted its price target for the U.K. shares to 3400 pence from 2500 pence. "An opportunity has opened up for BAT in vaping given 1) investment resets from JUUL and Imperial, 2) favourable competitive asymmetries in flavours and 3) potential market consolidation post May PMTA deadline," the broker said.

[simba_] 16/12/2019 09:40

What's going on?

[stepone68] 13/12/2019 14:58

Payment on 6th Feb. I think the ex-divi date will be the 24th, taking bank holidays into account.

[karateboy] 13/12/2019 13:58

When is the divi due. I took advantage price drop this morning to buy few more.

[muscletrade] 13/12/2019 10:58

Moody's Outlook For Oil & Gas And Tobacco Sectors Stable For New Year
from Alliance News | 13th December 2019 09:19
(Alliance News) - The global outlook for the oil and gas industry looks broadly stable for 2020, Moody's Investors Service said late Thursday, with tobacco also seen in the same light.

The oil price will remain volatile next year, Moody's said, with key issues being producer responses to growing inventories, the recovery in Saudi Arabian volumes, accelerating US output, and a slowing in demand in general across the world.

"The stable outlook for the integrated oil and gas sector is driven by an expected recovery in earnings before interest, tax, depreciation, and amortisation on the back of upstream production growth and higher refining margins," said Steve Wood, a managing director at Moody's.

"Companies' financial policies will become more shareholder friendly, with rising dividend payments. These firms will also increase their investments in low-carbon operations," Wood added.

The exploration & production sector's outlook remains stable, Moody's said, and it forecasts low single-digit growth in Ebitda in 2020. Volume growth will ease, but will remain at 5% to 7%, with a focus on capital discipline and cash flow "pivotal".

The oil field services sector also has a stable outlook, with Moody's forecasting flat Ebitda growth and only "modest" revenue growth.

Midstream operators will see Ebitda growth by 5% to 7% in 2020, Moody's continued, due to investments made in 2018 and 2019, leading to a positive outlook for 2020. The US regulatory outlook also remains supportive, Moody's noted.

Turning to tobacco, Moody's believes the global industry will see operating profit growth of 3% to 4% in 2020, with low-to-mid single-digit falls in cigarette volumes offset by price rises.

"While heated tobacco and vaping products will continue to gain traction, increasing investment needs will constrain profit growth for some companies," said Roberto Pozzi, a Moody's senior vice president.

High dividends will constrain free cash flow, Moody's noted, though stronger earnings will give tobacco firms the chance to reduce debt. However, regulatory pressure in the US remains a threat.

By George Collard; [e-mail]

Copyright 2019 Alliance News Limited. All Rights Reserved.

[redbaron10] 13/12/2019 10:53

£32 here we come......with a dividend to boot

[spud] 11/12/2019 16:10

Not helping:



Among the stocks that will exit are Barnett’s controversial positions in tobacco stocks, principally British American Tobacco (BATS), its second biggest holding at 6.9%, along with Altria and Imperial Brands (IMP) in which 5.9% is invested.

spud

[redbaron10] 04/12/2019 15:13

Now the stronger pound is working against us here.The markets seem to be anticipating a Tory majority rather than a hung parliament,and the bookies appear to be pricing that eventuality too.We will all know in just over a week.

[redbaron10] 02/12/2019 19:14

Ended 90p off the share price intra-day high.Top slicers in operation,can't blame them.Three weeks and another 50.75p dividend coming so £32 will have to wait. A Tory GE win and a Santa rally should push it there should the former happen.

[redbaron10] 02/12/2019 08:50

Only a quid off the 52 wk high now.Come on £32

[crossing_the_rubicon] 28/11/2019 15:46

British American Tobacco PLC (BTI) Tadeu Marroco on Q4 2019 Trading Update (Transcript)
+ Earnings call audio

[muscletrade] 28/11/2019 06:58

British American Tobacco shares approach major level
by Richard Hunter from interactive investor | 27th November 2019 10:11

After a quick rally, a thrust above this key price level is hugely significant for BAT shares.

British American Tobacco (LSE:BATS) is on course for a significantly better year, after an exceptionally difficult 2018 which saw 49% wiped off its share price.

In particular, despite various challenges, the US market is performing strongly. Given that the region is responsible for over 40% of group revenue, success on the other side of the pond is critical to the company’s fortunes.

There has been a slowdown in the US vaping market, however, with Presidential comments suggesting that the outright banning of e-cigarettes is rather more than just a possibility.

Source: TradingView Past performance is not a guide to future performance

This is not to say that BAT will necessarily be directly affected, since its products are generally not those in the firing line of the US authorities, but nonetheless the moves of the regulators is an ongoing warning shot to the tobacco industry in general.

Even so, BAT considers these "New Category" products to be essential to its long-term growth, as traditional smoking declines. It has underlined that there has been substantial additional investment in the division, where revenue growth is expected to be at the lower end of a range of 30% to 50%. While New category revenues currently only account for less than 5% of overall revenues, it is clearly an area of strategic focus.

More broadly, the group is guiding for overall revenue growth for the year of between 3% and 5%, with adjusted operating profit expected to fall somewhere between an additional 5% and 7%.

The company’s ability to generate prodigious amounts of cash is reflected by the fact that, even after dividends, full-year free cash flow is expected to be £1.5 billion. Indeed, one of the clear attractions of the “sin stocks” has been, and continues to be, dividend income and the current yield of 6.8% is comfortably covered. Meanwhile, the inelastic demand which accompanies the nature of the underlying product gives BATs strong pricing power.

A blue-chip poised for major rally
Can investment trust dividend heroes extend winning streak?
Income hunters can find great funds on ii’s Super 60 recommended list of investments
The twin concerns which have followed the stock are regulation in general and the company’s own debt pile, the latter of which is within the company’s control and where BATs is showing some signs of focus. The former of the concerns is out of its control, however, and there will inevitably be more regulatory pressure as time goes on.

In the meantime, the company is certainly making hay while the sun shines, even though the share price has been under immense pressure. In the year to date (and from a much lower base) the shares have recovered by around 20%, while over the last year there has been an improvement of 10%, as compared to a 5.5% jump for the wider FTSE 100 index.

This rollercoaster ride for the share price has strengthened the resolve of the BAT bulls further, where the market consensus of the shares as a ‘strong buy’ is still firmly in place.

[crossing_the_rubicon] 27/11/2019 15:20

Happy with that update I have to say....

:)

[crossing_the_rubicon] 27/11/2019 15:20

British American Tobacco Takes Stock of Vaping Crackdown
FTSE 100 tobacco giant maintains forecasts despite tough year for investors in the industry
The company’s shares rose 2% or 62.5p to £30.48 after the update, and they are up 23% this year despite a tough year for the tobacco industry.
The widespread popularity of vaping was expected to help tobacco giants transition away from cigarettes – Philip Morris’s slogan is “Delivering a smoke-free future” – but the scale of the backlash has unsettled investors. British American’s market update reveals that growth in “Combustibles”, ie. traditional tobacco cigarettes, will more than make up for a slowing US vaping market. Still, BATs is growing market share for its key e-cigarette brands, which include Vuse in the US, Vype in the UK and France, where it has a near-20% market share.

[crossing_the_rubicon] 27/11/2019 15:19

BAT warns e-cigarette sales growth to hit low end of target
Traditional tobacco unit bolstered by greater market share and higher prices
Revenues from its “new category” products, which include heated tobacco devices and e-cigarettes, would be at the lower end of its targeted 30 to 50 per cent growth range at constant currency in 2019.

But, it added, that thanks to increased prices and gains in market share in the declining combustible cigarette market, overall adjusted revenue growth would be at the higher end of expectations at 5 per cent.