British American Tobacco: A Long-Term Perspective On This 6% Yielder

Apollonian Research 117 Followers Follow Summary British American Tobacco's Modern Oral segment grew 65.9% in H1'26 and is now the company's largest New Category while holding a 39.2% volume share in top markets. Sweden, Norway, Poland, and the US show how oral nicotine expands the pool of users as cigarettes decline. A reverse DCF shows that the shares at $55 look to price Modern Oral at a mere 16% CAGR, while this segment has been compounding at 47-66% recently. Strong Buy, $80 target. I am effectively underwriting 25-30% growth while collecting a 6% yield as the gap closes. Filmstax/E+ via Getty Images Introduction As a Swede who has used "snus" (nicotine pouches) for 20 years, I have a unique view of the current trend of tobacco giants like British American Tobacco ( BTI ) and Philip Morris ( This article was written by Apollonian Research 117 Followers Follow PhD in Law & Economics with a dissertation on corporate wrongdoing, paired with an accounting background and a lifelong interest in markets.Generalist by temperament: value, growth, income, special situations, accounting shenanigans. Deepest coverage in fintech, consumer lending, and specialty finance, where legal, regulatory, and governance risk routinely moves the stock more than anything in the sell-side's model. Analyst’s Disclosure: I/we have a beneficial long position in the shares of BTI either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.