Thursday 28 Mar 2024
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KUALA LUMPUR (Sept 19): CIMB IB Research has downgraded British American Tobacco (M) Bhd (BAT) to “Hold” at RM33.74 with a lower target price of RM32.22 (from RM36.05) and said it was negative on BAT's decision to raise its selling prices by 50 sen/pack post Sales & Service Tax (SST).

In a note Sept 18, the research house said this will have a negative impact on sales volumes.

“We cut our FY18-20F EPS forecasts by 12.4-20.5% to account for lower sales volume growth’s prospects in the short term.

“Downgrade to Hold with a lower RM32.22 target price. Negative sentiment may exert short-term pressure on BAT but we think it is still a long-term recovery play,” it said.

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