Biden dropping menthol ban a boost for British American, says Jefferies

After the Biden Administration confirmed an earlier Wall Street Journal report that it will abandon plans to ban menthol cigarettes, Jefferies analyst Owen Bennett said that while the most was widely expected, it now takes the headline risk off the table near-term. The matter could potentially resurface after the election, though if Donald Trump wins, this would be less likely, the analyst tells investors in a research note. The firm noted that the move is a boost in sentiment for British American Tobacco (BTI), Altria (MO), and Imperial Brands (IMBBY), but specifically for British American, which is most exposed. Jefferies has Buy ratings on Altria and British American Tobacco and a Hold rating on Imperial Brands.