- Explore why British American Tobacco's high dividend yield of 7.2% may not be as enticing due to shrinking sales.
- Discover Wall Street's latest forecasts and the potential risks tied to BTI's current stock price.
- Understand alternative investments that could offer more stable cash flows for the future.
British American Tobacco (BTI) is known for its impressive dividend yield of 7.2%. However, investors should be aware of potential long-term risks, primarily due to the company's heavy dependence on cigarette sales, which saw a 5% decline in volume last year. Those looking for more secure cash flows might want to explore alternatives such as Enterprise Products Partners, Enbridge, or Realty Income.
Wall Street Analysts Forecast
According to projections from two analysts, the average target price for British American Tobacco PLC (BTI, Financial) is set at $39.18. The high estimate reaches $44.86, while the low is at $33.50. This average target suggests a potential downside of 1.71% from the current trading price of $39.86. For further insights, visit the British American Tobacco PLC (BTI) Forecast page on GuruFocus.
Regarding analyst opinions, three brokerage firms have provided a consensus recommendation for British American Tobacco PLC (BTI, Financial), averaging a recommendation score of 3.3. This rating aligns with a "Hold" status on a scale where 1 signifies a "Strong Buy" and 5 indicates a "Sell."
GuruFocus's proprietary estimates, known as GF Value, assess British American Tobacco PLC (BTI, Financial) to have a future one-year fair value of $35.59. This suggests a potential downside of 10.71% from its current price of $39.86. GF Value is determined by evaluating the stock's historical trading multiples, past business growth, and future performance projections. For a comprehensive analysis, see the British American Tobacco PLC (BTI) Summary page.
