BAT: Credit Suisse raises target price

(CercleFinance.com) - Credit Suisse has confirmed its 'outperform' rating on British American Tobacco (BAT) shares, having increased its corresponding target price to 4,100p (from 3,920p), in a report on the global tobacco players.


It expects BAT to generate an average growth of 3% in annual tobacco revenues over 2021-24, of which 1.5% will come from heated tobacco products, with nicotine alternatives taking the group's average annual revenue growth to 4.2%.

Higher sales of heated tobacco products lead Credit Suisse to raise its BAT outer-year margin and earnings estimates, with a 4% increase in its FY24 EPS estimate.


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