British American Tobacco PLC

British American Tobacco PLC (NYSE: BTI) is a consumer-focused company offering a diverse range of tobacco and nicotine products. It operates across several segments, including the United States, Asia Pacific Middle East and Africa, and Americas and Europe. The company's product portfolio spans multiple categories, such as Vapor, Tobacco Heating Products (THPs), Modern Oral, Traditional Oral, and Combustible cigarettes.

As per our previous US Dividend Income Report published on ‘BTI’ on Oct 23, 2025, Kalkine provided an ‘Buy’ stance on the stock at USD 34.67 based on fundamental analysis and the stock price has now moved by ~18.75% since then and has breached resistance 2.

Noted below are the details of support and resistance levels provided in our previous report:

Valuation Methodology

Daily Chart

British American Tobacco is expected to trade at a discount amid high debt burden from its Reynolds American acquisition, slowing growth in next-generation products, and regulatory scrutiny in key markets like the U.S. and EU. Declining cigarette volumes, illicit trade, and legal liabilities further challenge profitability. Competition from Philip Morris and ESG concerns also pressure its market position. Additionally, dividend sustainability is at risk due to rising debt costs and shifting consumer preferences away from traditional tobacco products.

Considering the target level attainments, negative profit margins, rising debt levels, and increasing volatility over global equity market a ‘Sell’ rating is assigned to the ‘BTI’ at the current market price of USD 41.17 as of March 31,2025 at 06:53 AM PDT. 

Note: This report may be updated with details around fundamental and technical analysis, price chart in due course, as appropriate.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance level is March 31,2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level that the stock is expected to reach as per the relative valuation method and or technical analysis taking into consideration both short-term and long-term scenarios.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the New York Stock Exchange (NYSE), NASDAQ Capital Markets (NASDAQ), and or REFINITIV. Typically, all sources (NYSE, NASDAQ, or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.