British American Tobacco Plc: Setting the Agenda

Research evidence excerpt

British American Tobacco Plc: Setting the Agenda

Equity Research

European Consumer Staples

26 May 2026

British American Tobacco Plc

Setting the Agenda

Strength in US nic pouches and growth in Vuse could lead to a

stronger H1 than expected – we think BATS could potentially

upgrade FY26 guidance. However, we acknowledge that BATS.L/BATS LN OVERWEIGHT Unchanged

geopolitical and macro factors could cause it to remain European Consumer NEUTRAL

cautious. H1 trading update on June 2nd. Reiterate OW, PT to Staples Unchanged

5400p. Price Target GBp 5400

raised 10% from GBp 4900

Price (21-May-26) GBp 4892

BATS has provided the following FY26 guidance (ex-FX): lower end of 3-5% revenue growth (low Potential Upside/Downside +10.4%

DD New Category revenue growth), 4-6% Adj EBIT growth (H2-weighted) and 5-8% adj. diluted Source: Bloomberg, Barclays Research

EPS growth. For H1 26, we forecast revenue growth of 3.5% and adj. EBIT growth of 4.9% and for

FY26, revenue growth of 3.8% (company-compiled consensus at 3.4%) and adj. EBIT growth of Market Cap (GBP mn) 106089

5.4% (consensus at 4.3%). Shares Outstanding (mn) 2168.64

Free Float (%) 99.88We think the strength in US nicotine pouches and growth in Vuse could lead to a stronger-than-

52 Wk Avg Daily Volume (mn) 2.9expected H1, and BATS could potentially upgrade guidance. However, given the uncertain

Dividend Yield (%) 5.01geopolitical environment, higher inflation and potential gas price impact on US cig volumes, we

Return on Equity TTM (%) 16.34acknowledge that BATS might take a conservative stance and wait until H1 results (end of July).

Current BVPS (GBp) 1995

BATS will report its H1 26 trading update on June 2nd, and we note the following points of Source: Bloomberg

interest:

Price Performance Exchange-LSE