Kalkine has a fully transformed New Avatar.
British American Tobacco PLC
BTI Details
British American Tobacco PLC (NYSE: BTI) is a British multinational business that manufactures and distributes cigarettes, tobacco, and other nicotine-containing goods. The company's top brands include Dunhill, Kent, Lucky Strike, Pall Mall, and Rothmans Neo, Vuse, Newport, Camel, and Natural American Spirit. In addition, vapor, tobacco heating products (THP), contemporary oral products, snus, and moist snuff are other potentially risk-reduced goods (PRRP). As of October 21, 2021, BTI's market capitalization stood at USD 82.44 billion, with 2.29 billion American Depository Shares (ADS) listed and outstanding (each ADS representing one ordinary share).
Latest News:
Regulatory Clearance: On October 13, 2021, the business announced that it had received first-of-its-kind marketing authorization from the US Food and Drug Administration (FDA) for Vuse Solo, a crucial brand, allowing it to sell Vuse Solo product in its original flavor.
H1FY21 Results:
Key Risks: The tobacco industry is tightly regulated globally, with manufacturers required to comply with various regulatory regimes all around the globe. These constraints may hinder BTI's capacity to market its products, jeopardizing its business and financial health. Furthermore, BTI is sensitive to unforeseen and substantial increases in tobacco and nicotine-related taxes in its key markets, which might significantly impact its revenues and results of operations.
Outlook:
FY21 Guidance (Interim Results Presentation, H1FY21)
Valuation Methodology: EV/EBITDA Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
BTI Daily Technical Chart (Source: REFINITIV)
Stock Recommendation:
BTI's share price has been largely stable over the past 12 months, increasing only by 8.33%. It is currently leaning towards the mid-band of the 52-week range of USD 31.60 to USD 41.14. The stock is currently trading below its 50 and 200 DMA levels, and its RSI Index is at 51.57. We have valued the stock using the EV/EBITDA-based relative valuation methodology and arrived at a target price of USD 43.36.
Considering the company's expansion to new categories, robust dividend yield, regulatory clearances, and current valuation, we recommend a "Buy" rating on the stock at the closing price of USD 36.16, down 0.60% as of October 21, 2021.
*All forecasted figures and Industry Information have been taken from REFINITIV.
*The reference data in this report has been partly sourced from REFINITIV.
*Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached.
Fortuna Silver Mines Inc.
FSM Details
Fortuna Silver Mines Inc. (NYSE: FSM) is a precious metals and mining company based in Canada that operates in Peru, Mexico, and Argentina. It works in Latin America on precious and base metal mining and associated operations, such as exploration, extraction, and processing. FSM runs the Caylloma silver, lead, and zinc mine (Caylloma) in southern Peru, the San Jose silver and gold mine (San Jose) in southern Mexico, and the open-pit gold heap leach mine at its Lindero site (Lindero Mine) in northern Argentina, which is now in the ramp-up phase. As of October 21, 2021, the company's market capitalization stood at USD 1.40 billion.
Latest News:
H1FY21 Results:
Key Risks:
Outlook:
Valuation Methodology: EV/Sales Multiple Based Relative Valuation
(Analysis by Kalkine Group)
* % Premium/(Discount) is based on our assessment of the company's NTM trading multiple after considering its key growth drivers, economic moat, stock's historical trading multiples versus peer average/median, and investment risks.
FSM Daily Technical Chart (Source: REFINITIV)
Stock Recommendation:
FSM's share price has fallen 37.42% in the past six months and is currently trading below the mid-point of the 52-week range of USD 3.74 to USD 9.85. The stock is currently trading between its 50 and 200 DMA levels, and its RSI Index is at 68.14. We have valued the stock using the EV/Sales-based relative valuation methodology and arrived at a target price of USD 5.70.
Considering the company's growth prospects, improvement in financial performance, expansion endeavors, associated risk, and current valuation, we recommend a "Buy" rating on the stock at the closing price of USD 4.80, down 0.21% as of October 21, 2021.
* The reference data in this report has been partly sourced from REFINITIV.
* All forecasted figures and industry information have been taken from REFINITIV.
* Depending upon the risk tolerance, investors may consider unwinding their positions in a respective stock once the estimated target price is reached.
Disclaimer - This report has been issued by Kalkine Pty Limited (ABN 34 154 808 312) (Australian financial services licence number 425376) (“Kalkine”) and prepared by Kalkine and its related bodies corporate authorised to provide general financial product advice. Kalkine.com.au and associated pages are published by Kalkine.
Any advice provided in this report is general advice only and does not take into account your objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your objectives, financial situation and needs before acting upon it.
There may be a Product Disclosure Statement, Information Statement or other offer document for the securities or other financial products referred to in Kalkine reports. You should obtain a copy of the relevant Product Disclosure Statement, Information Statement or offer document and consider the statement or document before making any decision about whether to acquire the security or product.
You should also seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice in this report or on the Kalkine website. Not all investments are appropriate for all people.
The information in this report and on the Kalkine website has been prepared from a wide variety of sources, which Kalkine, to the best of its knowledge and belief, considers accurate. Kalkine has made every effort to ensure the reliability of information contained in its reports, newsletters and websites. All information represents our views at the date of publication and may change without notice.
Kalkine does not guarantee the performance of, or returns on, any investment. To the extent permitted by law, Kalkine excludes all liability for any loss or damage arising from the use of this report, the Kalkine website and any information published on the Kalkine website (including any indirect or consequential loss, any data loss or data corruption). If the law prohibits this exclusion, Kalkine hereby limits its liability, to the extent permitted by law, to the resupply of services.
Please also read our Terms & Conditions and Financial Services Guide for further information.
On the date of publishing this report (referred to on the Kalkine website), employees and/or associates of Kalkine and its related entities do not hold interests in any of the securities or other financial products covered on the Kalkine website.
Kalkine Media Pty Ltd, an affiliate of Kalkine Pty Ltd, may have received, or be entitled to receive, financial consideration in connection with providing information about certain entity(s) covered on its website.