Wall Street Analysts Look Bullish on British American Tobacco (BTI): Should You Buy?
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When deciding whether to buy, sell, or hold a stock, investors often rely on analyst recommendations. Media reports about rating changes by these brokerage-firm-employed (or sell-side) analysts often influence a stock's price, but are they really important?Let's take a look at what these Wall Street heavyweights have to say about British American Tobacco (BTI) before we discuss the reliability of brokerage recommendations and how to use them to your advantage.British American Tobacco currently has an average brokerage recommendation (ABR) of 1.94, on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by nine brokerage firms. An ABR of 1.94 approximates between Strong Buy and Buy.Of the nine recommendations that derive the current ABR, four are Strong Buy and one is Buy. Strong Buy and Buy respectively account for 44.4% and 11.1% of all recommendations.Brokerage Recommendation Trends for BTICheck price target & stock forecast for British American Tobacco here>>>The ABR suggests buying British American Tobacco, but making an investment decision solely on the basis of this information might not be a good idea. According to several studies, brokerage recommendations have little to no success guiding investors to choose stocks with the most potential for price appreciation.Are you wondering why? The vested interest of brokerage firms in a stock they cover often results in a strong positive bias of their analysts in rating it. Our research shows that for every "Strong Sell" recommendation, brokerage firms assign five "Strong Buy" recommendations.In other words, their interests aren't always aligned with retail investors, rarely indicating where the price of a stock could actually be heading. Therefore, the best use of this information could be validating your own research or an indicator that has proven to be highly successful in predicting a stock's price movement.With an impressive externally audited track record, our proprietary stock rating tool, the Zacks Rank, which classifies stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), is a reliable indicator of a stock's near -term price performance. So, validating the Zacks Rank with ABR could go a long way in making a profitable investment decision.ABR Should Not Be Confused With Zacks RankAlthough both Zacks Rank and ABR are displayed in a range of 1-5, they are different measures altogether.Broker recommendations are the sole basis for calculating the ABR, which is typically displayed in decimals (such as 1.28). The Zacks Rank, on the other hand, is a quantitative model designed to harness the power of earnings estimate revisions. It is displayed in whole numbers -- 1 to 5.It has been and continues to be the case that analysts employed by brokerage firms are overly optimistic with their recommendations. Because of their employers' vested interests, these analysts issue more favorable ratings than their research would support, misguiding investors far more often than helping them.In contrast, the Zacks Rank is driven by earnings estimate revisions. And near-term stock price movements are strongly correlated with trends in earnings estimate revisions, according to empirical research.Furthermore, the different grades of the Zacks Rank are applied proportionately across all stocks for which brokerage analysts provide earnings estimates for the current year. In other words, at all times, this tool maintains a balance among the five ranks it assigns.Another key difference between the ABR and Zacks Rank is freshness. The ABR is not necessarily up-to-date when you look at it. But, since brokerage analysts keep revising their earnings estimates to account for a company's changing business trends, and their actions get reflected in the Zacks Rank quickly enough, it is always timely in indicating future price movements.Is BTI a Good Investment?In terms of earnings estimate revisions for British American Tobacco, the Zacks Consensus Estimate for the current year has increased 0.6% over the past month to $4.69.Analysts' growing optimism over the company's earnings prospects, as indicated by strong agreement among them in revising EPS estimates higher, could be a legitimate reason for the stock to soar in the near term.The size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, has resulted in a Zacks Rank #2 (Buy) for British American Tobacco. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>Therefore, the Buy-equivalent ABR for British American Tobacco may serve as a useful guide for investors.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report British American Tobacco p.l.c. (BTI): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks
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Quelle: Zacks
Nachrichten zu BAT PLC (British American Tobacco)
Analysen zu BAT PLC (British American Tobacco)
Datum | Rating | Analyst | |
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18.09.2024 | BAT Buy | Deutsche Bank AG | |
09.09.2024 | BAT Overweight | Barclays Capital | |
29.08.2024 | BAT Neutral | JP Morgan Chase & Co. | |
29.07.2024 | BAT Neutral | UBS AG | |
26.07.2024 | BAT Buy | Deutsche Bank AG |
Datum | Rating | Analyst | |
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18.09.2024 | BAT Buy | Deutsche Bank AG | |
09.09.2024 | BAT Overweight | Barclays Capital | |
26.07.2024 | BAT Buy | Deutsche Bank AG | |
25.07.2024 | BAT Buy | Jefferies & Company Inc. | |
19.07.2024 | BAT Buy | Jefferies & Company Inc. |
Datum | Rating | Analyst | |
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29.08.2024 | BAT Neutral | JP Morgan Chase & Co. | |
29.07.2024 | BAT Neutral | UBS AG | |
25.07.2024 | BAT Neutral | Goldman Sachs Group Inc. | |
25.07.2024 | BAT Sector Perform | RBC Capital Markets | |
18.07.2024 | BAT Neutral | JP Morgan Chase & Co. |
Datum | Rating | Analyst | |
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21.11.2019 | BAT Underweight | Morgan Stanley | |
21.10.2019 | BAT Underperform | Merrill Lynch & Co., Inc. | |
17.06.2019 | BAT Underweight | Morgan Stanley | |
16.10.2018 | BAT Underperform | RBC Capital Markets | |
15.10.2018 | BAT Underperform | RBC Capital Markets |
Um die Übersicht zu verbessern, haben Sie die Möglichkeit, die Analysen für BAT PLC (British American Tobacco) nach folgenden Kriterien zu filtern.
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