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Leading Independent Investment Research, Morningstar, Inc.

Morningstar

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Equity Bottom-Up

<p>We initiate coverage of <strong><a href="https://www.smartkarma.com/entities/13498" target="_blank" data-smartkarma-citation="entities:13498:1">Japan Tobacco Inc (2914 JP)</a></strong> with a fair value estimate of JPY 3,750, and assign it wide moat and negative moat trend ratings. The stock is trading at a 23% discount to our fair value estimate, although our earnings projections are 1%-7% below the consensus over the next three years. The current share price seems to imply flat earnings over the next five years, whereas we expect that growth in emerging markets, combined with prices hikes and share recovery in Japan, will…</p>

We initiate coverage of Japan Tobacco Inc (2914 JP) with a fair value estimate of JPY 3,750, and assign it wide moat and negative moat trend ratings. The stock is trading at a 23% discount to our fair value estimate, although our earnings projections are 1%-7% below the consensus over the next three years. The current share price seems to imply flat earnings over the next five years, whereas we expect that growth in emerging markets, combined with prices hikes and share recovery in Japan, will…

Launching Coverage of Japan Tobacco With Wide Moat and Negative Moat Trend Ratings; FVE of JPY 3,750