London, June 15, 2026, 11:57 BST.
- British American Tobacco traded close to flat in London, last seen around 4,630p/4,631p. The FTSE 100 edged up. HL
- The stock is still measured against BAT’s June trading update. Vapes and nicotine pouches grew faster, but the company didn’t lift its group guidance. BAT
- The company’s H1 2026 earnings report is expected on July 30, 2026. Quartr
British American Tobacco p.l.c. shares barely moved on Monday. Hargreaves Lansdown data showed the stock trading at 4,630p to sell and 4,631p to buy, off 2p, or 0.04%. The FTSE 100 was up 0.08%. BAT is one of the big defensive names for income, so when the shares lag on a stronger day, investors often look past the dividend and question growth. HL put the market cap at about £100 billion, with a price-to-earnings ratio of 13.08 and a dividend yield of 5.19%. The P/E ratio measures price to annual earnings; the dividend yield is the yearly payout against the share price. HL
BAT shares fell 4% after its June 2 pre-close update, as the company kept 2026 guidance at the bottom of its medium-term range. The main focus isn’t today’s small price move. New Categories — including Vuse vapes, Velo pouches and heated tobacco — are still seen growing revenue in the mid-teens for both the first half and full year of 2026, BAT said. Chief Executive Tadeu Marroco said, “I am pleased that our full-year delivery remains firmly on track.” Adjusted profit from operations is also still seen growing at the low end of 4% to 6%. BAT
Bullish investors argue BAT looks stronger in the U.S. now compared to last year. Velo keeps taking market share, and Vuse is doing better stateside. The FDA’s May announcement on enforcement for unauthorized e-cigarettes and nicotine pouches could help big names with pending applications go after the grey market. BAT CEO Marroco told analysts “the size of the prize is very high,” as BAT puts the unlicensed U.S. vape market at £7 billion. Morgan Stanley added to the momentum, with The Fly, citing TipRanks, noting analyst Rashad Kawan bumped the BAT price target up to 4,950p from 4,900p and stuck with an Overweight. Reuters
Bear arguments remain straightforward. Cigarettes are still the main profit driver for BAT, but now the company sees global cigarette industry volumes down 2.5% this year—worse than its previous cut of 2%. Reuters reported BAT has lost cigarette market share in its seven largest tobacco markets, including the U.S. Barclays analyst Pallav Mittal noted some investors had been hoping for upgraded guidance after the regulatory shift in the U.S. Typically, stocks climb when investors see better cash flow ahead. When guidance falls short, volumes shrink, or regulation adds risk, stocks usually drop. BAT faces all three, even though Velo and Vuse are improving. Reuters
BAT pays a yield above 5% and trades at about 13 times earnings, numbers that support the stock for income seekers. But with cigarette volumes falling, tight vape regulation, and management sticking to the low end of its growth target, it’s not a risk-free buy. The next focus is the half-year results due July 30. Investors want proof that New Categories are growing fast enough to balance out weakness in the core tobacco business, defend margins, and maintain dividend cover. HL
