British American Tobacco (NYSE:BTI) (LSE:BATS) stock continues to trade at depressed levels. However, smart capital allocation practices recently, combined with shares currently attached to a tremendous 9.7% yield, should sustain its bullish case. Admittedly, Wall Street’s negative sentiment is not unfounded, as cigarette sales volumes continue to face pressures globally. Nevertheless, progress from non-combustibles and a clear path toward shareholder value creation form a promising case. Thus, I remain bullish on BTI stock.
Sales from Combustibles Keep Facing Intense Pressure
Let’s begin by addressing the most notable bearish factor in BTI’s investment case: the severe pressure on combustibles, whose sales volumes have been declining at an alarming rate lately. Sure, other factors are pushing shares lower, too, including elevated interest rates, regulatory risks, a general…
