BAT Stock Declines Despite Improved Performance; Upgraded to Buy on Attractive Valuation
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BAT's stock price has declined 23% YTD despite improved company performance in 2022 vs 2021. Its valuation multiples look attractive relative to peers.
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BAT's revenue growth, operating profits, operating margins and EPS have improved significantly in H1 2022 compared to H1 2021.
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BAT's revenue growth, EPS growth and dividend yield compare favorably to its largest tobacco peers. Its valuation multiples are the lowest among peers.
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While near-term dividend outlook looks positive, BAT faces volume decline risks for traditional cigarettes long-term as it transitions to non-combustibles.
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With stock price decline and improved financial performance, BAT stock is upgraded to Buy from Hold, though medium-term risks remain from business transition.