UBS Remains a Buy on British American Tobacco (BTI)

British American Tobacco p.l.c. (NYSE:BTI) is one of the Best Undervalued UK Stocks to Invest In. On February 24, Faham Baig from UBS reiterated a Buy rating on the stock with a price target of £52. On the same day, James Edwardes Jones from RBC Capital maintained a Sell rating on the stock with a price target of £36.

​The mixed outlook comes as the company reaffirmed its fiscal 2026 guidance on February 18. British American Tobacco p.l.c. (NYSE:BTI) expects fiscal 2026 revenue growth towards the lower-end of 3% to 5% range, along with adjusted profits in the range of 4% to 6% growth.

​Earlier on February 12, the company released its preliminary results for the year ended December 31, 2025. The company added 4.7 million consumers to its smokeless brands to reach 34.1 million consumers. Smokeless products now account for 18.2% of group revenue, up 70 basis points from fiscal 2024. Management noted that this is driven by strong US performance, with Velo Plus achieving triple-digit revenue growth. Moreover, the reported group revenue fell 1.0% to £25,610 million due to a 3.1% currency headwind, but grew 2.1% at constant FX, fueled by combustibles in the US and Americas/Middle East, and Velo Plus.

​British American Tobacco p.l.c. (NYSE:BTI) is a global consumer‑goods company that manufactures and sells tobacco and nicotine products across multiple categories and geographies.

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