British American Tobacco downgraded to Neutral at UBS on ‘mixed’ execution

As previously reported, UBS downgraded British American Tobacco to Neutral from Buy with a price target of 2,400 GBp, down from 2,900 GBp, as the analyst assumed coverage of the stock. British American’s multi-category approach to tobacco’s transformation “has proven accurate,” but the group’s execution has had mixed success, the analyst tells investors. The company’s largest market of the U.S. has “now become challenged,” which the firm believes resulted in the new CEO’s 2024-26 investment plan, which it argues will limit EPS growth and share buybacks until 2026 and “keep investors on the sideline.”