Kenanga upgrades BAT to 'market perform'

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    KUALA LUMPUR: Kenanga Research upgraded British American Tobacco (M) Bhd (BAT) to "market perform" on the back of progress from measures introduced in Budget 2021 to control contrabands.The research house rolled over its valuation based to FY22 and raised its target price to RM14.80, applying a price-earnings ratio of 16x in line with a minus 0.5 standard deviation over its three-year mean."In spite of the Budget 2021 being a positive one for BAT with more stringent measures imposed to curb rampant contraband cigarettes, we believe the key matter lies in execution and any meaningful earnings recovery for the stock would only materialise with a sustained clampdown on the illegal cigarettes."Moving forward, we reiterate our view that the group’s outlook should continue to be cloude ...



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