London, June 13, 2026, 15:06 (BST)
- British American Tobacco shares in London ended up on the day, settling at 4,634p to sell and 4,635p to buy, a gain of 47p, or 1.03%. The FTSE 100 added 1.63%.
- Questions for the stock now focus on faster growth in vapes and nicotine pouches, with group guidance holding steady at the bottom of BAT’s medium-term range.
- BAT’s next key event is the Half-Year Report 2026 set for July 30. Investors want to see if U.S. gains and New Category growth are making up for lower cigarette volumes.
British American Tobacco p.l.c. shares gained in the latest London session as UK blue chips rallied and the company’s cash return story stayed in focus. Hargreaves Lansdown quoted BATS at 4,634p/4,635p after the close, a 47p rise, or 1.03%. Market cap was around £100.07 billion. Barclays’ delayed data showed the same 47p uptick with the last update at 15:40 on June 12. HL BAT’s ADR in New York ended Friday at $62.32, up 1.55%.
BAT sits in that spot where it’s both an income play and a stock in transition. The dividend yield was at 5.19%, with a price-to-earnings ratio of 12.95. Those numbers go a long way to show why BAT shareholders could be willing to step in on pullbacks, even as cigarette volumes fall. The company keeps pushing out big cash flows, a strong dividend, and has buybacks in place.
Bullish analysts point to BAT’s June 2 update. CEO Tadeu Marroco said full-year delivery is “firmly on track” and raised the company’s New Category revenue growth guide to the mid-teens for both H1 and the full year. BAT’s New Categories, which include Vuse vapes and Velo pouches, are meant to cut its dependence on cigarettes. BAT also said it’s still on track to cut leverage—net debt to adjusted EBITDA—to the 2.0-2.5x target by year-end. The company said it will keep a progressive dividend and £1.3 billion in planned 2026 buybacks. BAT
Bears point to the fact that the same update did not push overall group guidance higher. Reuters said earlier this month that BAT shares dropped after the company kept its full-year revenue and adjusted profit from operations targets at the low end of its 3%–5% and 4%–6% ranges. BAT also now expects global cigarette industry volume to drop about 2.5% this year, a cut from its prior roughly 2% decline. Reuters also reported BAT gave up cigarette share in its seven biggest tobacco markets.
U.S. regulation is still the big factor. Reuters said the FDA’s lighter approach to enforcement may let more vape and nicotine pouch products enter the market, even as political pressure heats up. U.S. senators have been pressing tobacco firms about lobbying around the policy change. Marroco told analysts the U.S. vape market has big potential—“The size of the prize is very high.” According to Reuters, BAT is getting ready to launch flavored Vuse products in the third quarter and a new Velo pouch in August or September. Reuters
Analysts sound mostly positive but aren’t ruling out risks. LSEG data quoted by Investors Chronicle listed 12 analysts setting a median 12-month target of 5,200p, which is about 12.3% above the recent 4,631p. The top call is 5,750p and the lowest is 4,581p. Ratings are split: four Buy, six Outperform, four Hold, one Sell, all as of June 11.
BAT sits at fair to slightly attractive levels for income investors on the numbers, not outright cheap. Dividend yield, share buyback and analyst median target all support bulls here. But risks are clear. Cigarette volumes are dropping, vaping and pouch competition is tough, U.S. rules are unclear, some funds won’t touch it on ethics, and management is guiding to the low end of medium-term targets. The big event is the July 30 half-year update, the key test on whether New Category growth can push the stock higher.
