Bank of America Securities analyst Bastien Agaud maintained a Buy rating on British American Tobacco today and set a price target of p5,300.00.
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Bastien Agaud has given his Buy rating due to a combination of factors tied mainly to the company’s U.S. performance and earnings outlook. He expects strong growth from modern oral products in the U.S., continued support from combustibles and vapour driven by tighter controls on illicit vapour, and margin benefits from duty drawbacks and the higher‑margin Velo brand, which together imply upside risk to consensus EBIT expectations and potential for guidance upgrades if first‑half trading is robust enough.
At the same time, he acknowledges softer trends in some other regions but still forecasts overall sales growth, while recent FX and forecast adjustments lead to small EPS upgrades for 2026 and 2027. In his view, the stock’s valuation remains compelling, trading at a notable discount to the European staples sector, especially given more favourable U.S. regulatory signals on nicotine pouches and vapour, reduced perceived regulatory risk reflected in a lower WACC, and a higher DCF‑based price objective of 5,300p that implies meaningful upside from the current share price.
According to TipRanks, Agaud is ranked #3967 out of 12188 analysts.