Citigroup downgrade Imperial Tobacco


Citigroup analysts have downgraded their Imperial Tobacco rating from 'buy' down to 'hold' following reports that suggest smoking could be wiped out by the year 2050.

Citigroup, the international financial conglomerate, have investigated the dwindling numbers of current smokers. As people become more and more health-conscious smoking is expected to eventually be eradicated.

Government enforced smoking bans are also having a strong effect on the amount of people giving up tobacco for good. The Citibank report stated: “The percentage of smokers is declining across the developed world, and the declines are more or less in a straight line in most markets. If these trends continue, then by 2050, many important tobacco markets will have gone to zero smoking.”

The report continued: “Smoking rates appear to be falling in a series of straight lines. If this continues, and it has for 50 years, then it means that the percentage declines in volumes will gradually accelerate.”

Both Imperial Tobacco and British American Tobacco saw declines following the report, Imperial Tobacco by 37p and British American Tobacco by 54p.