British American Tobacco is undervalued, facing challenges in US market, but positioned well for growth

From Morningstar: 2024-08-16 05:24:00

British American Tobacco (BATS) receives 5-star Morningstar rating as significantly undervalued at £28, below Fair Value Estimate of £39. Acquisition of Reynolds American positions company well in US market; generates revenue continent-wide for diversification. Facing challenges in US market due to falling cigarette sales, betting on alternative products for growth. Scheduled to pay 58p quarterly dividend to investors.



Read more at Morningstar: Dividend Watch: The Undervalued Dividend Aristocrat