Corporate Update – British American Tobacco PLC (BAT)

Share‑Buyback Transaction

On 28 November 2025, British American Tobacco PLC (BAT) announced a transaction involving its own shares. The details of the buy‑back program—such as the number of shares repurchased, the purchase price range, and the duration of the programme—were not disclosed in the publicly available press release. The announcement was made during a routine earnings conference call, where company executives reiterated their focus on delivering long‑term shareholder value through capital allocation, dividends, and share repurchases.

Analyst Reaction

Simultaneously, analysts at Deutsche Bank updated their assessment of BAT. Their revised price target increased by 7.4 % to £15.20 per share, while the rating remained “Buy.” Deutsche Bank’s commentary highlighted the company’s robust cash‑flow generation, consistent dividend policy, and the perceived undervaluation relative to peer benchmarks. The analysts noted that the buy‑back is likely to support the share price by reducing the shares outstanding, thereby improving earnings‑per‑share metrics and potentially enhancing the return on equity.

Market Impact

The London Stock Exchange reflected these positive signals. The FTSE 100 finished up 0.32 % on the day, buoyed in part by BAT’s performance. Within the index, BAT was one of the top gainers, posting a 2.18 % increase in its share price, which was the second‑highest gain among the constituents after a significant rise in a technology sector peer. The market activity was characterised by a moderate increase in liquidity, with a trading volume of roughly 2.4 million shares exchanged for BAT that day.

Contextual Analysis

BAT operates in the highly regulated tobacco industry, which continues to face stringent antitrust scrutiny, evolving consumer preferences, and rising taxation in many jurisdictions. Despite these headwinds, the company maintains a diversified product portfolio and a significant presence in emerging markets, which cushions it against downturns in mature markets. The buy‑back, therefore, can be interpreted as a strategic move to reinforce investor confidence in a sector that historically demonstrates defensive characteristics.

The Deutsche Bank rating and price target increase align with broader economic narratives: as inflationary pressures subside and monetary policy stabilises, corporate cash‑flows are expected to strengthen, allowing companies to deploy excess capital. The move also underscores confidence in BAT’s pricing power and its ability to navigate regulatory changes, especially in the EU and UK markets where brand loyalty remains high.

No further corporate developments, such as mergers, acquisitions, or new product launches, were reported in the sources available up to the announcement date. Consequently, stakeholders should monitor upcoming quarterly reports and regulatory updates for additional insights into BAT’s performance trajectory and strategic initiatives.