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Stock impact report

British American Tobacco: Deleveraging, Buybacks, 5% Yield Fuel Next Leg Of The Bull Run [Seeking Alpha]

British American Tobacco Industries, p.l.c. ADR (BTI) 
NASDAQ:AMEX Investor Relations: bat.com/ir
Company Research Source: Seeking Alpha
conversion, planned 2.0–2.5x leverage, and an increased £1.3bn 2026 buyback despite deleveraging. H1 2025 US revenue grew 3.7% despite a 7.6% combustibles volume decline, with pricing lifting combustibles revenue 11.4% and Velo Plus lifting the modern oral segment. I also see vapour and heated products as headwinds. Vuse revenue faces a high-single-digit FY25 decline, glo revenue is flat, and heated share is down 1.2 ppt. On valuation, BTI trades around 13x forward earnings, near decade highs, and second only to Philip Morris, while yielding 5.1% dividends (1-year forward estimate). In my view, the setup is constructive. Price action looks decent, with shares retesting $60 and H2 2025 results as a potential breakout catalyst. EJGrubbs/iStock via Getty Images In my last coverage on British American Tobacco p.l.c. ( BTI ), I argued the stock would consolidate in the mid-$50s before the next bull run. It turns out I was right. Just a few months after my article, shares Th Show less Read more
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