Proactive Investors - Ignore BAT’s disappointing first-half numbers suggests Jefferies and look further out where the outlook is increasingly bullish, according to the US bank.
“Stripping out Canada, ex-US RRP (reduced risks vapes etc) sales growth remained strong despite an inventory unwind, while there's an expected roll-out tailwind in the second half.
“And in US RRP, pouches are accelerating, alongside sizeable near-term upside potential in vape from possible illegal enforcement.”
'Buy' with a price target of £35 remains the Jefferies recommendation.
Shares were down 2.4% at £27.13.