London, June 23, 2026, 11:02 BST
British American Tobacco climbed 1.6% to 4,519 pence at 1054 BST Tuesday, adding to a 2.5% gain seen Monday. Imperial Brands was up 0.7%, but BAT outperformed among London’s leading tobacco names in the morning.
FTSE 100 dropped 0.7% by 0919 GMT as worries over higher interest rates pressured stocks in a risk-off morning. While most sectors fell, consumer staples were up over 1%. These defensive names can attract buyers when growth fears pick up, since their sales usually stay steady.
Shopify will block all vape sales on its site as soon as this week, after 25 state attorneys general pushed the company to act. The move puts a new regulatory focus on the industry. Reuters said illegal sellers rely more on e-commerce than authorised vape brands. BAT has put U.S. illicit vape sales at around $9 billion. The policy will ban even legal vape products, though most authorised vape sales are not done online.
BAT bought back 494,286 ordinary shares between June 15 and June 18, according to a Monday filing. Those shares are set for cancellation. Share buybacks cut the number of shares on the market and can lift earnings per share.
Execution in the U.S. is still the big question. BAT on June 2 said it sees mid-teens revenue growth from its “New Categories” — vapes, heated products, nicotine pouches. Group revenue and adjusted operating profit should come in at the low end of its 3%-5% and 4%-6% ranges. The £1.3 billion buyback target for 2026 stays in place. Bat
BAT is targeting the illegal U.S. vape market, with CEO Tadeu Marroco telling analysts “The size of the prize is very high.” The company aims to launch flavoured Vuse products in the third quarter and bring out a new Velo pouch in August or September. Barclays analyst Pallav Mittal said some investors were looking for BAT to at least raise its revenue guidance, which points to a gap between U.S. market expectations and BAT’s near-term stance. Reuters
BAT is still up against a steeper drop in cigarette sales. The company projects global industry volume will drop around 2.5% in 2026 and has kept guidance at the lower end. Asia-Pacific, Middle East, and Africa have shown weaker numbers. That tightens options for a slower U.S. rollout or more strain on shoppers.
Shares recovered for two straight sessions but are still trading about 15% under their 5,326p high for the year. The bounce is there, though investors want more evidence that things like regulatory changes and buybacks will lift profits for the long term.
