06:40 AM EDT, 05/14/2026 (MT Newswires) -- BofA Global Research maintained its constructive stance on British American Tobacco (BATS.L, BTI.JO), noting the tobacco giant's growth trajectory in the US supports potential consensus upgrades.

"We remain bullish on BAT, with the upside thesis primarily driven by the US, where Modern Oral should continue to perform strongly in 1H26. US combustibles and [vapor] should remain contributors to growth, supported by the ongoing crackdown on illicit [vapor]. US margins should also benefit from duty drawback and higher margin profile for Velo despite continued downtrading, in our view. As a result, we see upside to cons. estimates for adj. EBIT growth in 1H26 at cFX (BofA +4.5% vs VA +3.6%). There is a possibility that management raises FY26 guidance following a stronger-than-expected 1H26; however, we believe this will depend on management's confidence in 2H26, as consumer sentiment is likely to deteriorate in 2H26 and inflation may run above the assumptions embedded in FY26 guidance, we believe,"analysts said Wednesday.

Within this context, the research firm slightly lifted its organic sales and adjusted EBIT projections for full-year 2026 to 2028, leading to an increase in adjusted EPS assumptions by 0.6%, 2.3% and 2.6%, respectively.

BofA also raised its price objective to 53 pounds sterling from 47 pounds sterling, while reiterating its buy rating, saying the valuation "looks quite attractive"amid "more constructive messaging"from the US Food and Drug Administration regarding nicotine pouches and vapor.