JPMorgan reinstates coverage of British American Tobacco with Overweight rating and GBP 53 price target
JPMorgan reinstated research coverage on British American Tobacco (BTI) and assigned an Overweight rating together with a GBP 53.00 price target. The bank expects like‑for‑like revenue growth of 3‑5% in 2027 and adjusted earnings per share growth of 5‑8% in 2026. It highlighted strong momentum in new‑category products, noting an 18% increase in H1 2026 revenue and a 58.1% surge in U.S. new‑category sales. JPMorgan also pointed to a 43.7% adjusted operating margin and smokeless products representing 19.8% of total revenue.
Why it matters
The Overweight rating and GBP 53 target signal JPMorgan’s confidence in BTI’s defensive cash flow and growth prospects, which may attract institutional buying and support the share price. The firm’s forecasts for revenue and EPS growth provide a benchmark for investors evaluating BTI’s performance against consensus expectations.
Key facts
- 1JPMorgan reinstated coverage on BTI with an Overweight rating and a price target of GBP 53.00. investing.com
- 2The bank expects like‑for‑like revenue growth of 3‑5% in 2027. finance.yahoo.com
- 3JPMorgan projects adjusted earnings per share to grow 5‑8% in 2026. finance.yahoo.com
- 4First‑half 2026 revenue from New Categories increased 18%. finance.yahoo.com
- 5U.S. revenue from New Categories surged 58.1% in the same period. finance.yahoo.com
- 6Smokeless products accounted for 19.8% of total group revenue. finance.yahoo.com
Summary written by AlphAI AI Desk from 4 of 4 sources. Not investment advice. Figures are as stated by the linked sources.