British American Tobacco Isn't Cheap Enough To Justify The Risk

British American Tobacco remains a 'hold' as deteriorating fundamentals and limited upside outweigh growth in modern oral products. BTI's New Categories, particularly Velo and Vuse, are delivering strong market share gains, but core combustibles face long-term decline. Despite revenue growth, net income and EBITDA declined; cost-cutting and share buybacks are central to management's strategy.