Why Fund Managers are Backing BATS

Tobacco stocks may be out of favour with ESG investors, but British American Tobacco is trading at well below fair value and contrarian fund managers are snapping up the shares

David Brenchley 13 February, 2019 | 2:33PM

British American Tobacco cigarette smoking ashtray

Despite having gone from “hero to zero in a remarkably short space of time”, according to Allianz’s Matthew Tillett, British American Tobacco (BATS) is still a perennial favourite of the UK retail investor.

The stock was the 10th most-popular stock on Hargreaves Lansdown’s platform through 2018. That’s despite a huge 50% decline in the share price over the year.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Allianz UK Opportunities C Acc GBP100.37 GBP-0.40
British American Tobacco PLC2,588.00 GBP0.00
Imperial Brands PLC1,322.60 GBP0.00
OYSTER European Mid & Small Cap C EUR  
OYSTER European Opps C EUR 2371.74 EUR0.83
OYSTER Mlt-Asst Diversified R EUR172.99 EUR-0.17

About Author

David Brenchley

David Brenchley  is a Reporter for Morningstar.co.uk

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