(Sharecast News) - Analysts at Citi raised their target price on tobacco giant British American Tobacco to £48.50 on Friday, stating it expects the firm's 2026 growth performance to surprise to upside.
Citi said BAT remains its top-pick in the beverages and tobacco space, with the group well-placed to deliver at the upper-end/slightly above FY25E consensus revenue expectations.
Moreover, Citi said it continues to see scope for both positive earnings momentum and a further re-rating in FY26. Importantly, Citi said BAT's 9 December pre-close trading update should provide further confidence that the group was on-track to deliver its mid-term growth algorithm and highlight the further re-rating opportunity.
Citi also reiterated its 'buy' rating on the stock.
Reporting by Iain Gilbert at Sharecast.com