Wells Fargo notes JTI is expanding in the areas of e-vapor, tobacco vapor and next generation products.

At Japan Tobacco (JTI)’s investor meeting in London on Sept. 18, the company reiterated its mid-to-high single-digit profit growth target and noted that it expects to grow profits in the mid-to long-term.

Wells Fargo Securities LLC, noted JTI is accelerating its investments.

“JTI’s goal is to become the leader in emerging products and as such, the company is accelerating its investments behind three platforms…” said Bonnie Herzog, managing director, beverage, tobacco and convenience research for Wells Fargo.

Those three platforms include:

(1) E-Vapor – JTI acquired E-Lites and more recently Logic and expects to lead in this category, Herzog noted.

(2) Tobacco-Vapor – JTI recently acquired ploom and plans to continue to build this platform; and

(3) Next Generation Products – JTI is continuing to develop products.

“Overall, JTI is committed to reduced risk products and management was very complimentary of Philip Morris’s iQOS platform. JTI is currently working on a unique and innovative tobacco-vapor proposition and pilot launches are planned for 2016. Bottom line, we remain cautious near term given slowing category growth and regulatory uncertainty, but bullish long-term continuing to believe consumption of vapor & other non-combustibles (i.e. heat-not-burn) could surpass consumption of combustible cigs in the next decade (by 2025),” Herzog said. .