British American Tobacco FDA denial largely anticipated, says JPMorgan

JPMorgan analyst Jared Dinges keeps a Neutral rating on British American Tobacco after the FDA issued Marketing Denial Orders for the company’s leading Vuse Alto e-cigarette brand. The news is “incrementally unhelpful” and likely to pressure the shares initially, the analyst tells investors in a research note. However, the firm believes the FDA denial for Vuse Alto menthol was already anticipated by investors. As such, British American Tobacco shares may see “some gradual relief” following the initial selloff, says JPMorgan.