BTI - British American Tobacco: The Worst May Have Already Been Priced In
2024-02-19 06:56:39 ET
Summary
- The tobacco industry has been under scrutiny due to growing public concern about the potential health risks associated with consuming tobacco products, resulting in macro headwinds.
- In my opinion, the worst-case scenario for British American Tobacco's future has already been priced into its current valuation, making it an attractive investment opportunity for a longer time horizon.
- The company has shown continued operational robustness and has offset its US combustibles sales decline with solid growth in alternative product sales and growth in other regions.
- I believe that their high dividend yield provides adequate opportunity for income-seeking investors, factoring expectations of rate cuts and strong cash flow.
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British American Tobacco: The Worst May Have Already Been Priced In