British American Tobacco should take some positives from yesterday’s US banning of Juul’s e-cigarette products, according to broker Jefferies.
The broker notes that the denial/ban is based on insufficient toxicological evidence, as opposed to youth usage.
“To this, we fully expect an appeal, and given the nature of the denial, we think a reasonable chance a stay is granted, allowing them to remain on the market, and then also allowing time for amendments/Juul 2 application.”
Jefferies adds that if the Juul decision had been based on youth usage there would have been a risk of BAT applications also being rejected given the usage of its Vuse range among the young.
The decision being based around toxicological evidence means that risk is now much less.
Shares in BAT rose 1.7% to 3,511.