British American Tobacco earns a Buy rating at ~$53, driven by Velo's rapid growth and improving profit mix. Velo's dominance in Modern Oral, with strong US and European market shares, underpins BTI's long-term growth prospects. New Categories' margin expansion and cost savings initiatives position BTI for 5–8% EPS growth and attractive total returns.
British American Tobacco trades at 11x 2026 earnings with a 6.31% yield, despite strong operational progress and robust free cash flow guidance. BTI's New Category revenue grew 18% with contribution margin rising to 13.8%, and Velo now leads the global Modern Oral market. Management reaffirmed 2030 targets: 3–5% revenue growth, 4–6% APFO growth, 5–8% EPS growth, and over £50 billion FCF from 2024–2030.
A diversified combustible portfolio across premium, value, and discount positioning along with high-growth vapor/oral offerings underscores BTI's future resilience amid secular declines. H2'26 may deliver expanded US total nicotine volume shares, given the upcoming launches of Velo with higher strengths/limited edition flavors and Vuse Pro's fruit-flavored pods. The recent stock price meltdown triggers BTI's discounted P/E of 11.13x, richer forward dividend yields of 6.28%, and expanded upside potential to my LTPT of $64.
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| TJD Thomas John Drogan PR Inc.IPAL SECURITIES Inc. | 45,262 | $1.93M | $2.63M | $694,278.2 | 35.96% |
| DI David Izzi Brown, LISLE/CUMMINGS Inc. | 31 | $1,488.13 | $1,860 | $371.87 | 24.99% |
Cyrus Pearo INVESTMENT MANAGEMENT ASSOCIATES Inc. /ADV | 272,457 | $8.36M | $16.29M | $7.93M | 94.97% |
Curtis Ellergodt Rothschild Investment LLC | 1,334 | $49,014.14 | $77,372 | $28,357.86 | 57.86% |
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 252,627 | $15.6M | $14.65M | -$949,902 | -6.09% |
| Tobacco Industry | Consumer Staples Sector | Tadeu Luiz Marroco CEO | NYSE Exchange | 110448107 CUSIP |
| GB Country | 47,797 Employees | 29 Dec 2026 Last Dividend | 14 Feb 2017 Last Split | 14 Apr 1980 IPO Date |
British American Tobacco p.l.c. is a global leader in the tobacco and nicotine market, offering a wide range of products to consumers across the world. Founded in 1902, the company has established a strong presence in the industry with its headquarters located in London, United Kingdom. British American Tobacco is committed to providing adult consumers with a variety of tobacco and nicotine products, maintaining a portfolio that includes traditional cigarettes to newer, reduced-risk products.