Surprise BAT, JTI pullback of cigarette price not reversing analysts’ bearish view

PETALING JAYA: The reversal of an earlier cigarette price hike by tobacco companies British American Tobacco (M) Bhd (BAT) and JT International Bhd (JTI) surprised the market, but did not do much to reverse the bearish view analysts have on BAT.

Half of the analysts polled by Bloomberg have a “sell” call on BAT, and some think the pullback of the RM1 price hike implemented earlier in the month, the first time companies have done a U-turn in selling prices, would not do much to reverse a slide in earnings the company is forecast to experience.