Tobacco Stocks Significantly Undervalued say Analysts

British American Tobacco and Imperial Brands are the only two UK stocks to earn a five-star value rating from Morningstar equity analysts

Emma Wall 10 July, 2018 | 12:13AM

tobacco cigarette sin stock investment undervalued esg

Tobacco stocks are controversial. As environmental, social and governance factors come to the fore for investors, the ethics of profiting from these sin stocks are at best hazy, at worst immoral.

Ostrum Asset Management, an affiliate of Natixis Investment Managers, proudly pledged last week to exclude tobacco from all its open-end funds.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
British American Tobacco PLC2,543.50 GBP0.00
Franklin UK Equity Income W Acc1.89 GBP0.95
Imperial Brands PLC1,262.50 GBP0.00
Invesco High Income UK Z Acc232.72 GBP1.17
LF Woodford Equity Income C Sterling Acc13.59 GBP4.06
SLI UK Equity High Income Inst Acc222.81 GBP0.82

About Author

Emma Wall  is former Senior International Editor for Morningstar

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