British American Tobacco stock gets JPMorgan Overweight call
Published on 11/12/2026 at 10:59 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSAnalyst Outlook Strengthens
- JPMorgan expects like-for-like growth of 3% to 5% for British American Tobacco in 2027.
- The bank forecasts adjusted earnings per share of 389 pence, about 1% above consensus.
- JPMorgan sees the company's next-generation products gaining share in US vapor and nicotine pouches.
JPMorgan reinstated coverage of British American Tobacco on November 10, 2026, with an Overweight rating and a 5,300-pence price target. The bank cited the tobacco group's multi-category next-generation product portfolio and its gains in US vapor and nicotine pouches, according to Investing.com.
Growth Outlook Moves Into Focus
JPMorgan expects like-for-like growth of 3% to 5% in 2027 as British American Tobacco moves beyond pressure in Asia Pacific, the Middle East and Africa. The bank also pointed to improved recent trends in the US cigarette market as a support for the outlook.
Its central forecast calls for 3.9% like-for-like growth in 2027 and adjusted earnings per share of 389 pence, which is approximately 1% above consensus. JPMorgan set a December 2028 discounted-cash-flow target of 5,300 pence, using a terminal growth rate of negative 0.5% and a weighted average cost of capital of 10.1%.
New Categories Remain Key
The investment case rests heavily on the performance of newer nicotine products. JPMorgan said the company's multi-category approach has gained market share in US vapor and nicotine pouches, giving investors a more diversified growth profile beyond traditional combustible tobacco.
The rating follows a similar constructive view from Goldman Sachs, which recently upgraded British American Tobacco to Buy. The two analyst calls put execution in the United States and a recovery across Asia Pacific, the Middle East and Africa at the center of the debate over whether the group can deliver its medium-term growth ambitions.
British American Tobacco stock traded at 54.92 euros on Lang & Schwarz at 10:50 CET on Thursday, November 12, 2026.
British American Tobacco at a Glance
- Company: British American Tobacco p.l.c.
- ISIN: GB0002875804
- London ticker: BATS:LN
- Analyst rating: JPMorgan Overweight
- Price target: 5,300 pence for December 2028
- Lang & Schwarz quote: 54.92 euros at 10:50 CET on November 12, 2026
Investor attention now turns to whether British American Tobacco can convert stronger US nicotine-product demand into the projected growth rate while managing regulatory and regional risks. The broader S&P 500 market environment remains a relevant backdrop for global consumer-staples valuations.
