British American Tobacco stock gains as Goldman sees clearer growth path

Published on 11/04/2026 at 18:15 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

British American Tobacco stock draws a Goldman Sachs upgrade on a clearer growth path. New Categories and the December update are the next tests.

Growth outlook and market focus

Goldman Sachs upgraded BAT to Buy and sees organic sales growth approaching the midpoint of management's 3% to 5% range.
New Categories, US execution and a potential regional recovery are central to the investment case.
BAT's December 2026 trading update is the next major test for second-half momentum.

BAT, GB0002875804, Illustration mit AI erstellt.

Goldman Sachs upgraded British American Tobacco to Buy from Neutral on Monday, November 2, citing a clearer path toward sustained organic revenue growth, according to Investing.com. The bank raised its 12-month price target to 5,600 pence from 5,200 pence and expects sales growth to move toward the midpoint of BAT's 3% to 5% guidance range.

British American Tobacco stock traded at 55.83 euros on Lang & Schwarz at 18:07 CET on Wednesday, November 4, 2026, 2.44 percent above the Xetra close of 54.50 euros on Wednesday. The fresh quote was 2.70 percent above the 54.36-euro level cited in the latest own report at 10:00 CET, a separate comparison from the Xetra session move.

New Categories lead the case

Goldman forecasts organic sales growth of about 4% in 2027 and 2028 after four years of low-single-digit growth below management's target. It points to resilient combustible sales and accelerating New Categories, including Velo Max and Vuse.

Velo Max reached 44,000 outlets in October after its September launch, with a further 55,000 outlets expected by January 2027. Vuse vapor volumes rose 20% through August in US states with observable regulatory enforcement, according to the brokerage report.

The United States generates more than 60% of BAT's operating profit and remains the key market in Goldman's view. The bank also expects Asia-Pacific, Middle East and Africa to return to growth from 2027 as headwinds in Bangladesh and Australia annualize.

Risks and next milestones

Goldman sees medium-term operating profit growth of 5% to 6% as New Categories scale. It forecasts average earnings per share growth of 9% over five years and average annual free cash flow of about 9.5 billion pounds through 2030, above BAT's guidance of about 8 billion pounds.

The brokerage cut its earnings per share forecasts for 2027 and 2028 by 0.4% and 1.3%, respectively. Adverse regulation, US Food and Drug Administration enforcement and authorization delays remain key risks. BAT's full-year 2026 trading update in December is expected to test the projected second-half momentum.

The real-time quote of British American Tobacco stock gives investors a live reference point while the investment case remains tied to delivery in New Categories, regional recovery and capital allocation.

FTSE 100 market reports provide the broader UK market context at Current market reports.

More company-specific coverage is available in more news and analyses on British American Tobacco stock.