Deutsche Bank slashes British American Tobacco target price
Analysts at Deutsche Bank slashed their target price on shares of British American Tobacco after reviewing the potential actions that the US Food and Drug Administration might take on menthol cigarettes and litigation risks in Canada.
British American Tobacco
2,293.00p
17:05 18/04/24
0.75%
17.00p
FTSE 100
7,877.05
17:14 18/04/24
n/a
n/a
FTSE 350
4,334.00
17:14 18/04/24
n/a
n/a
FTSE All-Share
4,290.02
16:54 18/04/24
n/a
n/a
Tobacco
25,992.43
17:14 18/04/24
0.75%
194.70
They cut their target price from 6,000p to 4,000p, although they conceded that they took a "relatively aggressive" view on both those risks.
In such a scenario, their estimate for British American Tobacco's earnings per share in fiscal year 2022 would be 14% lower at 347p, versus 401p previously.
Nevertheless, they stuck to their recommendation to 'buy' the shares.