British American Tobacco PLC ADR
BTI: XNYS (USA)
| Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
|---|---|---|---|
| $82.00 | Cmdb | Kfnmtcmh |
British American Tobacco’s Diversified Alternatives Approach Fails to Buoy Its Competitive Edge
/s3.amazonaws.com/arc-authors/morningstar/220f0649-85f9-4004-a281-b91d9bc53139.jpg)
Business Strategy and Outlook
British American Tobacco is the world’s second largest tobacco company by volume, with cigarette sales to over 180 countries. But with global cigarette consumption declining about 5% per year, BAT has invested in several next-generation products that can deliver nicotine with reduced risk. This strategy makes sense, but we think the firm has placed too many bets, leading to it becoming a “jack of all trades, master of none.”