Bti stock price forecast metrics point toward stable earnings

BTI stock price forecast metrics point toward stable earnings per share around $3.40 on a forward twelve-month basis. Cash flow resilience in low-growth environments is attracting long-term dividend-focused portfolios. That resulted in a one-time charge and will lead to higher ongoing depreciation and amortization expenses, which will create an ongoing headwind to earnings. But the fact that's most notable is that British American Tobacco has basically put an end date on one of its most important businesses. That makes it all the more important for it to hit its 2035 goal of generating 50% of revenue from non-cigarette products. Further, given the expected demise of the U.S. cigarette business, that must be viewed as just an intermediate goal. The company will need to keep growing its non-cigarette business lines from there. I’m bullish on BTI due to its strong yield, consistent dividend history, sizable share buyback program, and compelling valuation. BTI stock price forecast draws from sector indices like MSCI World Tobacco, which remain in mild uptrend since May 2024, underscoring sector resilience amid regulatory pressure.