BRITISH AMERICAN TOBACCO PLC ADS Common Stock (BATS) Coverage Initiated at Liberum Capital

Stock analysts at Liberum Capital initiated coverage on shares of BRITISH AMERICAN TOBACCO PLC ADS Common Stock (LON:BATS) in a report issued on Wednesday. The brokerage set a “buy” rating and a GBX 4,100 ($54.59) price target on the stock. Liberum Capital’s target price points to a potential upside of 11.08% from the company’s previous close.

Several other equities analysts also recently commented on the company. Credit Suisse Group set a GBX 5,200 ($69.23) price target on BRITISH AMERICAN TOBACCO PLC ADS Common Stock and gave the company a “buy” rating in a report on Tuesday. JPMorgan Chase & Co. reiterated an “overweight” rating on shares of BRITISH AMERICAN TOBACCO PLC ADS Common Stock in a report on Wednesday, June 13th. Deutsche Bank reiterated a “buy” rating on shares of BRITISH AMERICAN TOBACCO PLC ADS Common Stock in a report on Wednesday, June 13th. Royal Bank of Canada upgraded BRITISH AMERICAN TOBACCO PLC ADS Common Stock to a “sector performer” rating in a report on Wednesday, June 13th. Finally, DZ Bank reiterated a “neutral” rating on shares of BRITISH AMERICAN TOBACCO PLC ADS Common Stock in a report on Tuesday, June 12th. Seven equities research analysts have rated the stock with a hold rating and eleven have issued a buy rating to the stock. The stock currently has an average rating of “Buy” and a consensus price target of GBX 5,354.41 ($71.29).

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Shares of BRITISH AMERICAN TOBACCO PLC ADS Common Stock opened at GBX 3,691 ($49.14) on Wednesday, MarketBeat reports. BRITISH AMERICAN TOBACCO PLC ADS Common Stock has a 12 month low of GBX 4,064 ($54.11) and a 12 month high of GBX 5,643.60 ($75.14).

In other BRITISH AMERICAN TOBACCO PLC ADS Common Stock news, insider Kingsley Wheaton sold 1,000 shares of BRITISH AMERICAN TOBACCO PLC ADS Common Stock stock in a transaction on Friday, April 27th. The shares were sold at an average price of GBX 4,023 ($53.56), for a total transaction of 拢40,230 ($53,561.44). Also, insider Jerome Abelman sold 10,303 shares of BRITISH AMERICAN TOBACCO PLC ADS Common Stock stock in a transaction on Tuesday, April 3rd. The stock was sold at an average price of GBX 4,092 ($54.48), for a total transaction of 拢421,598.76 ($561,308.43). In the last 90 days, insiders sold 24,900 shares of company stock worth $99,795,847.

About BRITISH AMERICAN TOBACCO PLC ADS Common Stock

British American Tobacco p.l.c. provides cigarettes and other tobacco products worldwide. It manufactures vapour and tobacco heating products; oral tobacco and nicotine products, such as snus and moist snuff; cigars; and e-cigarettes. The company offers its products under the Dunhill, Kent, Lucky Strike, Pall Mall, Rothmans, Vogue, Viceroy, Kool, Peter Stuyvesant, Craven A, Benson & Hedges, John Player Gold Leaf, State Express 555, and Shuang Xi brands.

Why Rent-A-Center Inc. Stock Popped Today

What happened

Shares of rent-to-own retailer Rent-A-Center Inc. (NASDAQ:RCII) soared on Monday after the company agreed to be acquired for $15 per share. This comes less than a week after Rent-A-Center received a lower buyout offer following the completion of its strategic review. The stock was up about 22.2% at 11:30 a.m. EDT.

So what

Rent-A-Center has agreed to be acquired by Vintage Rodeo Parent LLC, an affiliate of Vintage Capital Management LLC, for $15 per share. The total transaction value is $1.365 billion, including debt. Vintage Capital offered $14 per share last week. That followed multiple offers in 2017, ranging from $13 to $15.

Image source: Rent-A-Center.

Rent-A-Center is throwing in the towel as a public company after a long period of slumping margins and a declining stock price. The $15 offer price is roughly 49% higher than the price last Oct. 30, the day before the company began its strategic review. But it's down more than 60% from its multiyear high, reached in late 2013.

Rent-A-Center CEO Mitch Fadel sees this transaction as the best course of action: "The Rent-A-Center board, having just completed a comprehensive review of strategic and financial alternatives in consultation with outside legal and financial advisers, unanimously supports this transaction and is confident it maximizes value for stockholders while delivering a significant and immediate cash premium."

Now what

Vintage Capital is also the controlling shareholder in Buddy's Home Furnishings, another rent-to-own retailer. Vintage Capital founder Brian Kahn sees the combination of Buddy's and Rent-A-Center as "a compelling opportunity to utilize our resources and expertise to enhance value and create a leader in the rent-to-own industry."

Whether Vintage Capital will be able to turn around Rent-A-Center, which posted a revenue decline and a net loss last year, is an open question. The deal is expected to close by the end of 2018.