LONDON, June 16, 2026, 14:03 BST — Shares of British American Tobacco (BAT) climbed after the company launched a buyback. Tobacco volumes remain a focus for investors.
- BAT traded in London at 4,583p, up 10p, or 0.22%. The FTSE 100 put on 0.60%.
- BAT repurchased 617,131 shares last week, spending about £28 million, its latest filing showed.
- The company has the Half-Year Report 2026 coming up, with release set for July 30.
British American Tobacco p.l.c. moved higher in London Tuesday, lifted by FTSE 100 strength with ongoing buybacks. The stock was last seen at 4,583p, up 0.22%. BAT opened at 4,505p after closing the previous session at 4,573p. Hargreaves Lansdown puts the group’s market cap near £99.03 billion. BAT trades on a P/E ratio of 12.92 and offers a 5.24% dividend yield. P/E measures share price to earnings per share, while dividend yield is the payout as a portion of the share price.
BAT shares saw a short bounce after the latest buyback news. In a June 15 filing, the company said it bought 129,323 shares on June 8, 124,954 on June 9, 122,358 on June 10, 120,643 on June 11, and 119,853 on June 12. BAT will cancel all these shares. Buybacks cut share count and can lift earnings per share if profit doesn’t move.
BAT shares gained as investors weighed the firm’s dividend and income story in the face of another weak quarter for combustibles. Earlier this month, BAT reiterated its 2026 forecast and pointed to the lower end of its mid-term range: 3%–5% revenue growth, 4%–6% adjusted profit from operations growth, and 5%–8% adjusted diluted EPS growth. CEO Tadeu Marroco said BAT is “firmly on track” for the full year with some improvement in New Category revenue showing up. BAT
Bulls focus on BAT’s cash, its share buybacks, the high dividend, and demand for non-cigarette brands like Velo and Vuse. The company targets mid-teens revenue growth in New Categories for both the first half and the full year. BAT also said debt to EBITDA should land at 2.0x to 2.5x by year-end.
BAT cuts its outlook again, warning global cigarette industry volumes will likely fall about 2.5%. Previously, it forecast a 2% drop. The company’s heated-tobacco business is seeing stiff competition in cheaper product ranges. On June 2, Reuters said BAT shares dropped after the company raised goals for its smoking alternatives but kept overall group guidance steady. Investors remain unconvinced that vapes and pouches can make up for shrinking cigarette sales.
BAT is looking more fairly valued than cheap at today’s price. The dividend and buyback are still in place for income hunters, but shares don’t look like a bargain unless BAT can top the low end of its guidance. Morningstar’s Kristoffer Inton puts fair value at GBX 4,350 and calls BAT “fairly valued.” He said stiff competition could keep BAT from hitting its high growth target. Next up is the Half-Year Report 2026 on July 30, where investors will watch for progress in New Categories after more buybacks and dividends. Morningstar
