RBC Updates Model for British American Tobacco Post-H1 Results; Underperform Rating Kept

12:43 AM EDT, 08/11/2026 (MT Newswires) -- RBC Capital Markets revised its model for British American Tobacco (BATS.L, BTI.JO), tweaking its price target and earnings forecasts for the tobacco giant after the release of its first-half results. "Our FY26e operating profit growth estimate of +3.6% remains slightly below management's guidance for the lower end of the +4-6% range as we expect adverse category margin mix to remain a drag [on] the group's profitability," the research firm said Monday. Analysts also lifted their price target to 38 pounds sterling from 36 pounds sterling and raised their revenue projections for full-year 2026 and 2027. Meanwhile, RBC trimmed its adjusted EPS forecast for 2026 and increased its estimate for 2027 and 2028. "We retain our Underperform rating as we continue to see downside risk to the Group's profitability over the mid-term," the note said.