- British American Tobacco (BAT) predicts that its full-year revenue will remain at the lower end of a 3% to 5% increase in constant currency.
- The adjusted operating profit (Adj OP) is expected to grow at the lower end of a 4% to 6% range.
- Adjusted earnings per share (EPS) in constant currency are projected to grow at the lower spectrum of a 5% to 8% increase.
- New Category revenue, particularly for Modern Oral and Vapour products, is anticipated to grow in the mid-teens for the first half and full year of 2026.
- BAT aims to reduce its leverage to a range of 2 to 2.5 times by the end of the year.
- There is confidence in maintaining the mid-term growth algorithm, despite expectations that 2026 performance will hit the lower ends of growth ranges.
- The company anticipates a 1% foreign exchange transactional headwind.
- US revenue and profit are expected to show significant growth, particularly in the first half of the year, as stronger comparatives are expected in the second half.
- BAT is on track for strong cash generation, with a balanced approach to capital allocation.
- The plan includes reducing leverage progressively within the target range while supporting a progressive dividend policy and sustainable share buy-backs, amounting to £1.3 billion in 2026.
- Analyst sentiment includes 10 buy ratings, 4 hold ratings, and 2 sell ratings.
“`
A look at British American Tobacco Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 4 | |
| Growth | 5 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.8 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
British American Tobacco, a global tobacco giant, seems poised for a bright future based on its Smartkarma Smart Scores. The company scores high on growth and dividend, showcasing its potential for long-term profitability and investor returns. With solid momentum and resilience scores, British American Tobacco appears equipped to navigate challenges and capitalize on opportunities in the evolving tobacco industry.
As a holding company overseeing a diverse portfolio of tobacco products, British American Tobacco continues to position itself as a key player in the market. Its above-average scores in growth and dividend highlight a promising outlook for investors seeking stable returns and potential capital appreciation in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
