Morgan Stanley initiated coverage of British American Tobacco ADRs with an Overweight rating and $38 price target. The analyst sees the company’s user base continuing to grow globally, driven largely by growth in its NGP portfolio, particularly in U.S. vaping, which the firm says could offset weakness in the U.S. cigarette market and a potential flavor ban on its combustibles portfolio. The Overweight rating reflects BTI‘s strong near-term earnings visibility in an uncertain environment, the analyst tells investors in a research note.
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