KUALA LUMPUR (Feb 18): Shares of British American Tobacco (M) Bhd (BAT) fell 1.48% this morning after CIMB IB Research downgraded the stock and said it was no longer affordable.
At 11.35am, BAT fell 54 sen to RM35.88 with 34,400 shares done.
CIMB IB Research downgraded BAT to "reduce" at RM36.30 with an unchanged target price of RM32.77 and said BAT's share price has risen 7% since Nov 2, 2018 when the Finance Ministry announced plans to recoup RM1 billion in cigarette excise duty lost to illicit trade.
In a note Feb 15, the research house said the volume recovery play has pushed BAT above 1 s.d. of its forward P/E.
"Our FY19F projection has imputed a 900m-stick volume growth y-o-y (+21%)," it said.