British American Tobacco Gets Overweight Rating, 4,950 GBp Price Target
BTI•Morgan Stanley maintained its Overweight rating for British American Tobacco and lifted its price target to 4,950 GBp. The company is betting on new-category products like vapor and diversifying through a C$75.30 million convertible debenture conversion and US$10 million equity investment in Charlotte’s Web.
1. Morgan Stanley Maintains Overweight Rating
Morgan Stanley reiterated its Overweight rating on British American Tobacco and raised its price target to 4,950 GBp, signaling confidence in the company’s strategic direction despite a contracting traditional cigarette market.
2. Shift to New-Category Products
British American Tobacco is accelerating its push into new-category offerings such as vapor products, aiming to offset anticipated declines in global cigarette volumes and drive top-line growth.
3. Strategic Investment in Charlotte’s Web
Through its subsidiary BT DE Investments Inc., the company converted a C$75.30 million convertible debenture and made a US$10 million equity investment in Charlotte’s Web Holdings to diversify its product portfolio.
4. Market Valuation and Trading Range
Shares trade around $59.54 with a 52-week range between $46.38 and $67.30, and a market capitalization of approximately $128.70 billion reflecting investor sentiment on its diversification strategy.
