BTI
Velo’s doing the heavy lifting
British American Tobacco just got a Buy rating at around $53, and the bull case is basically: Velo is becoming a bigger deal than the market seems to appreciate. That’s the modern oral brand doing the most — strong share in the US and Europe, fast growth, and a little bit of that shiny-new-category energy investors love.
Why investors are paying attention
This isn’t just about one product having a good month. The broader story is that BTI’s New Categories business is improving its mix and margins while cost savings keep kicking in. In plain English: the company is trying to turn a legacy tobacco machine into a more profitable nicotine platform.
The numbers behind the vibe shift
The analyst’s setup points to:
- Velo driving momentum in modern oral
- New Categories margin expansion
- Cost savings helping the bottom line
- A path to 5%–8% EPS growth
That’s the kind of math that can make a stodgy dividend name feel a little less sleepy.
Big picture
If Velo keeps scaling and the profit mix keeps getting prettier, BTI’s story shifts from “slow and steady” to “maybe this thing has more gears than people think.” And in tobacco, that’s how you get the market to wake up and re-rate the stock.