British American Tobacco Share Discussion Threads

[scobak] 13/3/2018 20:03

It seems to be in sync with Imps.

[dbensimon] 13/3/2018 13:33

Not sure what's happening with this stock....any idea as to why it keeps falling???

[andrewbaker] 12/3/2018 13:31

It's becoming a tad highly weighted in my portfolio, but I'm looking to add more when it drops below £42.50. With a 30% capital gain in the next 12 months likely - IMHO - plus a good covered, now quarterly paid, dividend; I have to add more. Surely it can only be ethical selling holding the price down? And when that ends, watch it bounce!

Update: just had to; went and bought more. :)

[philanderer] 12/3/2018 09:36

12th march Jefferies buy tp 6000p up from 5800p

[philanderer] 05/3/2018 18:37

On an unchanged dividend that's a yield of 4.6% on tonight's closing price.

Market still pricing in an acceptable yield with probably four US rate rises pencilled in for 2018


edit:

And 6.6% for IMB on their closing price tonight.

[thanksamillion] 05/3/2018 18:06

You cant see it on the UK BATS chart, but looking at the US chart -different hours of trading, what we saw today was a double bottom. Hopefully the uptrend will now resume.

[call-logger] 05/3/2018 17:33

Are you working for Goldman Sachs, dbensimon?

[dbensimon] 05/3/2018 13:56

Surely at this level it's buying opportunities!!!

[thanksamillion] 05/3/2018 11:48

They may as well just throw 4 dice to get the next target

[philanderer] 05/3/2018 10:08

Goldman Sachs cutting target price to 5400p from 5850p , retains 'buy'

[thanksamillion] 28/2/2018 10:46

Another Director has bought £43k worth, come on the rest of you.

[stepone68] 28/2/2018 10:22

It's still above pre-Brexit referendum highs, so maybe it just got a bit ahead of itself last Summer. Volumes are in decline, so where next for BATS?

[andrewbaker] 28/2/2018 10:09

I'm more than puzzled by the drop in price from £56 last June. Currency woes can't account for it, nor can loss of faith in the business it's in. Maybe a combination of those two plus ethical considerations causing sales, and perhaps a tad unhappy with Reynolds buy and disquiet that a weak dollar reduces US tax benefits. Ok, a few possible negatives individually, but none longer term to cause such a drop, IMHO. The dividend alone makes this a far better home for longer term cash than a deposit account, plus there is now up to 30% capital growth there over the next 12 months. Although I hold a bundle already, I'm going to add at the current price.

[thanksamillion] 26/2/2018 11:42

Nice buy indeed, however if this one is unduly low as I believe it is, buying by the whole board would be a better sign of confidence in this opinion. Disappointing.

[philanderer] 23/2/2018 17:58

Nice buy from the chairman :-)

[philanderer] 23/2/2018 09:42

23rd feb CFRA hold tp 5000p cut from 5600p
23rd feb Morgan Stanley overweight tp 5500p cut from 6000p
23rd feb Citigroup buy tp 6000p
23rd feb JP Morgan Caz overweight tp 5610p

[philanderer] 22/2/2018 18:21

British American Tobacco dropped after guidance on currency exchange headwinds eclipsed its full-year results, which matched earnings forecasts but disappointed on organic volume growth.

BAT guided for a 7 per cent hit to earnings per share from currency effects, which will more than exceed the benefit from US tax reform. Analysts saw the guidance as cutting consensus forecasts by about 5 per cent.

[philanderer] 22/2/2018 12:22

FT Alphaville with Goldmans comment ( near the end)

[philanderer] 22/2/2018 11:47

Analyst Mike Van Dulken at Accendo Markets noted that revenues fell short of expectations and volumes fell if excluding Reynolds.

Revenues, variously £20.3bn reported, £20bn adjusted, £19.3bn adjusted at constant currencies all missed the consensus forecast of £20.6bn, though pre-tax income was either a beat at £8.1bn on an adjusted basis or bang in-line at £7.8bn when adjusted for constant currencies. "Importantly, both metrics suggest a currency boost which, of course, can’t exactly be relied upon for growth forever," he said.

"The real problem, however, looks to be volume growth (the be-all-and-end-all in tobacco sales) of +3.2%, thanks only to the monster Reynolds acquisition. Excluding the purchase, volumes fell 2.6% organically basis, although Global Drive Brand (GDB) growth of 7.6% was a big rebound from -1.3% in H1, and total organic growth did at least outperform a market -3.6%.

"Nonetheless, falling volumes are a problem unless you can keep increasing prices. Comments about a challenging trading environment, even after a transformational deal, also ring loudly in investors ears."

[philanderer] 22/2/2018 11:22

Fly in the ointment today... Cigarette and tobacco-heated product sales volumes dropping year-on-year on an organic basis.


22nd feb UBS 'buy' tp 5650p cut from 5800p

[riverman77] 22/2/2018 10:38

Gary Cook - I'm considering the opposite, switching from IMB which I recently closed to BAT. Yes IMB has higher dividend but is struggling to grow and not sure how sustainable dividend will be over the long term. BAT is more profitable with much better growth prospects in my opinion.

[ygor705] 22/2/2018 09:48

Nothing wrong with the results: everything wrong with the wider market.

[2vdm] 22/2/2018 09:11

Not sure why I took the advice and bought these recently at 4900! Just hope it recovers eventually. Any views appreciated.

[philanderer] 22/2/2018 09:10

Hold IMB already , don't want any more.


BAT sales boosted by Reynolds acquisition, but organic volumes decline

British American Tobacco plc (LON:BATS) has reported higher full year sales and profits, helped by the acquisition of Reynolds American, but its shares still followed the market lower in early trading on Thursday as organic volumes declines.

The FTSE 100-listed cigarette manufacturer saw its full-year revenue rise to £20.292bn, up from £14.751bn the year before, with adjusted organic revenue at £15.712bn, ahead 6.5%.

The group's adjusted organic profit from operations rose 7.8% to £5.91bn, and adjusted diluted earnings per share increased by about 10% to 284.4p, excluding the impact of a gain related to the deal and a deferred tax credit.

The company said that volume of cigarettes and tobacco heating product grew by 3.2%, driven by the acquisition of US tobacco company Reynolds American Inc. but on an organic basis it fell by 2.6%, albeit outperforming the market which declined by an estimated 3.5%.

Richard Burrows, BAT chairman, said: “The Group continued to deliver on its commitment to high single figure constant currency earnings growth, substantially reinforced the long term sustainability of that growth with the largest acquisition of a tobacco company ever completed and achieved success in its Next generation Products business.”

The firm hiked its dividends per share to 195.2p, up 15.2% on the 169.4p paid in the previous year.

In early trading, BAT shares were 4.7% lower at 4,239.5p.


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