British American Tobacco stock gets JPMorgan Overweight call
Published on 11/13/2026 at 10:38 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWSJPMorgan highlights BAT growth prospects
- JPMorgan forecasts like-for-like sales growth of 3% to 5% for 2027.
- Nicotine pouches and US vaping are central to the broker's investment case.
- BAT's December pre-close trading update is the next key test for the outlook.
JPMorgan has restarted coverage of British American Tobacco with an Overweight rating and a 5,300-pence price target, putting the tobacco group back in focus for growth-oriented investors. The broker's call was issued on Tuesday, November 10, and was reported by Investing.com.
New categories drive the thesis
JPMorgan expects BAT to return to like-for-like sales growth of 3% to 5% in 2027. Its central forecast is 3.9%, while adjusted earnings per share are projected at 389 pence, about 1% above consensus.
The broker sees the group's multi-category next-generation portfolio as the main growth lever. It highlighted market-share gains in US nicotine pouches and vaping, while identifying easing pressure in Asia-Pacific, the Middle East and Africa and modestly improved US cigarette trends as additional support.
Velo, BAT's nicotine-pouch brand, holds about 30% of the US market, according to the JPMorgan analysis reported by Investing.com. The broker is looking for further evidence of momentum in newer categories in BAT's upcoming pre-close trading update.
Cash returns remain in focus
JPMorgan expects BAT's net debt-to-EBITDA ratio to return to its 2 to 2.5 times target range by the end of 2026, with a forecast of 2.4 times. It said that progress could support a rise in annual share buybacks from 1.3 billion pounds in 2026 toward 2 billion pounds by 2030.
The research note also places BAT's traditional tobacco business in a broader transition. JPMorgan expects tobacco and next-generation product sales growth of 1.9% at constant currency in 2027, with newer products contributing 4% to 5% of sales. Regulatory developments, regional demand and the pace of US execution remain material risks to the outlook.
Share price and next catalyst
British American Tobacco stock traded at 55.41 euros on Lang & Schwarz at 10:34 CET on Friday, November 13.
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
- Lang & Schwarz quote: 55.41 euros at 10:34 CET on November 13, 2026
Broader market context remains relevant as investors weigh defensive tobacco cash flows against regulatory and consumer-demand risks; see current S&P 500 market reports.
Investors now await the December pre-close trading update for evidence that US nicotine-product momentum can translate into the growth profile outlined by JPMorgan. More news and analyses on British American Tobacco stock.
