Bursa Malaysia Stock Watch

British American Tobacco - Time to Quit!

kltrader
Publish date: Thu, 13 Sep 2012, 09:36 AM
kltrader
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  • Downgrade to SELL. BAT's valuations are at their peak and its dividend yield has dropped to a 10-year low following a run-up in its share price - a rising risk to investors. We expect 2H12 earnings to be largely flat as BAT's market share growth has lost momentum in the last two quarters. Upside is also limited due to the competitive environment and rising threat from the illicits. Hence, we downgrade BAT to a SELL at an unchanged DCF-based TP of MYR55.00.
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Source: Maybank Research - 13 Sept 2012
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