Kenanga downgrades BAT, cuts TP to RM18.30

KUALA LUMPUR: British American Tobacco (Malaysia) Bhd's (BAT) "heat-not-burn" products are not expected to deliver meaningful contributions in the near term, says Kenanga research.

The research house said in a note that the Glo and refillable Neo sticks could re-establish its presence in the new market but is not expected to be significant to earnings with an expected contribution of less than 5% of the group's FY20 sales.