BUZZ-Jefferies terms BAT as 'top pick' among global tobacco companies, shares jump 3.3%
Jefferies has designated British American Tobacco (BATS.L) as its 'top pick' among global tobacco companies, leading to a 3.3% increase in its shares, now at 3,646p. The brokerage also highlighted Philip Morris as a 'growth pick' and rated Imperial Brands as a 'value standout.' Jefferies noted the sector's appeal due to its growth potential, defensive characteristics, and attractive valuations. Year-to-date, BATS stock has risen 26.42%, with 9 out of 14 brokerages rating it as 'Buy' or higher.
British American Tobacco’s shares (BATS.L) up 3.3% at 3,646p - top gainer in FTSE 100 index (.FTSE)
Jefferies assumes sector coverage of global tobacco; chooses BAT as “top pick” in the sector, followed by Philip Morris (PM.N) as “growth pick”
Peer Imperial Brands (IMB.L) rated by brokerage as “value standout”; stock up 1.5% at 2,890p
“The sector sits in the sweet spot of staples through attractive growth, a defensive nature, rich cash returns, and still-attractive valuation” - Jefferies In June, BAT raised its annual sales forecast on improving U.S. demand
9 of 14 brokerages rate BATS as “Buy” or higher, 4 “Hold”; their median PT is 3,550p - as per data compiled by LSEG
YTD, BATS stock up 26.42%
