British American Tobacco Price Target, Earnings Forecasts Revised as RBC Notes Midterm Profitability Headwinds

12:22 AM EST, 12/10/2025 (MT Newswires) -- British American Tobacco's (BATS.L, BTI.JO) pre-close trading update prompted RBC Capital Markets to adjust its model for the tobacco giant and raise its price target to 36 pounds sterling from 34 pounds, with an underperform rating. "For FY25, we increase our organic revenue growth estimate to +2.0% as we take into account BAT's share gain in the US - including in the vapour category. Our organic profit growth estimate (adjusted for Canada) at +1.9% is in line with guidance for c.2% growth," the research firm said Tuesday. Analysts' operating profit growth forecast for 2026 stays at 2%, below the company's expected 4% to 6% growth range, as RBC continues to expect "adverse" category margin mix to negatively impact the company's profitability. Simultaneously, the research firm said its higher EPS assumptions for 2026 and 2027 reflect the group's planned 1.3 billion-pound share buyback in the coming year.