BTI stock has been on a rocket launch of a run as of January 15, 2022. The stock ran from $33 a share in early December to $42.39 as of after-hours close on January 14, 2022. Even after this huge run, the stock still has a dividend yield of 7%.
British American Tobacco price target raised to 3,400 GBp at Barclays
On January 10, 2022, Barclays analyst Gaurav Jain raised the firm’s price target on British American Tobacco to 3,400 GBp from 3,300 GBp and keeps an Overweight rating on the shares.
On December 20, 2021, Citi analyst Simon Hales opened a “Positive Catalyst Watch” on shares of British American Tobacco with a Buy rating and GBp 3,250 price target. The analyst expects 2022 to be a good year for tobacco. Although investor interest has been limited by ESG factors, and attractive valuations and dividends alone have so far proven not enough of a reason to entice marginal buyers back to the space, “the likely onset of share buybacks mean this is about to change,” Hales tells investors in a research note.
FDA Authorizes Big Tobacco’s e-cigarette
On October 12, 2021, the US Food and Drug Administration (FDA) gave tobacco company RJ Reynolds permission to market its Vuse’s Solo e-cigarette. This is the first vaping device to receive marketing authorization from the FDA, which it said will help to reduce the consumption of regular cigarettes.
The FDA does not approve tobacco products, because none of them are safe for consumption in any amounts. Rather, it just authorizes their marketing, which means it can be sold in stores.
According to the FDA, big tobacco has presented evidence that smokers are likely to replace their regular cigarettes with e-cigarettes, either partially or completely, which puts them at a lower risk of inhaling the harmful chemicals associated with regular cigarette smoking. Because of this, in the eyes of the FDA the product represents a tool to protect public health.
📈 BTI Stock Chart Analysis
Both the short-term and long-term trends are positive. This is a very positive sign. BTI is part of the Tobacco industry. There are 8 other stocks in this industry. BTI outperforms 75% of them. Volume is considerably higher in the last couple of days, which is what you like to see during a strong movement up. Prices have been rising strongly lately, it may be a good idea to wait for a consolidation or pullback before considering an entry.
There is a support zone ranging from 39.59 to 39.70. This zone is formed by a combination of multiple trend lines and important moving averages in the daily time frame. There is also a support zone ranging from 36.98 to 37.44. This zone is formed by a combination of multiple trend lines and important moving averages in multiple time frames. Finally, there is a support zone ranging from 34.63 to 34.65. This zone is formed by a combination of multiple trend lines in multiple time frames.
Although BTI has an excellent technical rating, it does not present a decent entry opportunity at the moment. Prices have been extended to the upside lately. For a nice entry it is better to wait for a consolidation. Click here to sign up for email alerts on when BTI stock consolidates and is a good long entry.