Re: British American Tobacco
Posted: Mon Oct 14, 2019 9:56 am
not vested
British American Tobacco(ROTH MK)
Share Price: MYR17.24
Target Price: MYR24.80
Recommendation: Buy
Getting serious; U/G BUY
We are positive on the Govt’s initiative to reign in high illicit cigarette industry share through stricter regulations and increased enforcement budget.
While consumer affordability remains an issue, legal industry volumes should benefit in tandem with lower illicit share, allaying a key concern for investors.
With 42% share price correction post-2Q19, BAT is undervalued based on our unchanged DCF-based TP of MYR24.80 (WACC:8.1%; LTG:2.0%).
We U/G to BUY with 44% upside and FY19 yield of 6.5%.
Source: Kim Eng
https://factsetpdf.maybank-ke.com/PDF/1 ... 4df013.pdf
British American Tobacco(ROTH MK)
Share Price: MYR17.24
Target Price: MYR24.80
Recommendation: Buy
Getting serious; U/G BUY
We are positive on the Govt’s initiative to reign in high illicit cigarette industry share through stricter regulations and increased enforcement budget.
While consumer affordability remains an issue, legal industry volumes should benefit in tandem with lower illicit share, allaying a key concern for investors.
With 42% share price correction post-2Q19, BAT is undervalued based on our unchanged DCF-based TP of MYR24.80 (WACC:8.1%; LTG:2.0%).
We U/G to BUY with 44% upside and FY19 yield of 6.5%.
Source: Kim Eng
https://factsetpdf.maybank-ke.com/PDF/1 ... 4df013.pdf