This report is not a personal recommendation and does not take into account your personal circumstances or appetite for risk.
Trade Parameters
Technical Observations – For
Technical Observations – Against
Defensive/non-cyclical names should fare better in a market downturn. Bernstein (16 Oct) initiates coverage at Market Perform. On 16 Oct, BATS backed its FY profits target. New CEO starts from next April. 6% dividend yield.
Risks to British American Tobacco include a poor trading update on 12 December, a sustained market recovery/rally that favours risk assets rather than more defensive/non-cyclical names, regulatory efforts to curb smoking (tobacco and e-cigs) and, of course, broker downgrades.
Brokers/analysts are bullish on the shares with only 8% suggesting Sell. This is supported by 80% of broker price targets suggesting upside from current levels, to a consensus target of 4337p, which is above our short-term target of revisiting August highs of 4200p.
Next Event: Trading Statement, 12 December
Latest Broker 12-Month Consensus: 71% Buy, 21% Hold, 8% Sell (full breakdown on request)
Source: DowJones Newswires, Reuters News, Bloomberg or Company Press releases
| 1wk | 1m | 3m | 6m | 1yr | 2yr | 3yr | 4yr | 5yr | |
| Perf % | 12.7 | -1.0 | -8.7 | -4.7 | -26.5 | -23.3 | -6.9 | 6.4 | 5.7 |
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Prepared by Michael van Dulken, Head of Research