KUALA LUMPUR (Sept 16): British American Tobacco (Malaysia)'s cigarette and heated-tobacco products could benefit from a possible ban on flavored e-cigerettes in the U.S., which will likely escalate Malaysians' concerns over vaping's health implications and teen usage, Daiwa says, raising the stock to buy from hold. 

However, the brokerage cuts its target price to RM27.80 from RM30 to factor in an expected rise in advertising spending due to the company's new heated-tobacco product's introduction to market. Traditional cigarettes and new heat-not-burn products could generate better sales as they may be perceived as safer alternatives amid heightened concerns and regulations over vaping, Daiwa says. 

Shares, which were last traded at RM21.50, are up 13% year to date.