We issue a BUY recommendation on B.A.T Kenya with a target price of KES 503.25 representing an upside of 15.69 % on the current price of KES 435.00 as of Friday 17th December 2021. Our valuation is brought about by the expectation of tobacco consumption patterns to tend back to pre-covid levels and increase the domestic sales volume for B.A.T. Additionally, the company has shown resilience during the 2020 period given its strategy to expand its customer base to other countries. We furthermore expect its new product lyft to increase the company's revenue and allow B.A.T to tap into a new market given the products ability to overcome major risks associated with traditional tobacco consumption.
