BAT Draws Goldman Upgrade and FDA Clearance for Velo as Capital Group Slips Below 18% Stake
Published on 11/07/2026 at 04:44 | Editorial boerse-global.de
British American Tobacco packed a dense week of corporate news into a stretch that also saw its shares sag amid a broad technology-led selloff in London. The stock was down 2.3% on the day, with the weakness rippling across the FTSE 100 and hitting peers such as AstraZeneca as well.
The most closely watched development for the investment case came from Goldman Sachs, which on Monday lifted BAT from Neutral to Buy. The broker pointed to a clearer path toward sustainable organic revenue growth as the rationale for the upgrade. Alongside the rating change, Goldman raised its price target to 5,600 pence from 5,200 pence, pairing a more constructive stance with a higher valuation marker.
FDA Green Light for Velo
Regulatory news added a second pillar to the week. On 30 October the US Food and Drug Administration authorized the marketing of 24 Velo nicotine pouch products, each containing 4 mg of nicotine. The products are made by Modoral Brands, an operating company of Reynolds American within the BAT group.
On the shareholder register, The Capital Group Companies reported a reduced voting stake, slipping below the 18% disclosure threshold on Wednesday. The company said it received the notification yesterday. The holding now stands at 17.975584%, down from 18.023677% previously, leaving the major investor with a still-substantial voice despite the decline.
Should investors sell immediately? Or is it worth buying British American Tobacco?
Those votes are split between ordinary shares and depositary receipts, with the larger block held in ordinary shares. The positions sit in client accounts that Capital Group companies manage at their own discretion, meaning the beneficial owners are the underlying clients. That structure matters for how the filing should be read: the change reflects assets under client management rather than a single proprietary bet. All of the disclosed voting rights stem from share positions including the depositary receipts, with no contribution from financial instruments.
Buyback and Board News
BAT also reported the repurchase of 596,824 ordinary shares under its buyback programme, executed between 26 and 30 October, continuing its return-of-capital efforts. Separately, the company said it issued and allotted 45,205 ordinary shares under its Sharesave employee savings plan between 1 and 30 October.
On the governance front, BAT announced that Bruce Sewell will join the board as an independent non-executive director on 1 January 2027. He will also serve on the audit and nomination committees.
British American Tobacco at a turning point? This analysis reveals what investors need to know now.
For fundamental valuation, attention turns to business expectations. Analysts forecast earnings per share of £3.61 for 2026 and a dividend of £2.51, both estimates. Whether BAT backs those projections with its results is the key question for investors; the reduced major-shareholder stake offers a fresh data point on the ownership structure, while operating performance will determine how durable the profit and payout expectations prove. The next scheduled date for fourth-quarter 2026 results is 11 February 2027, giving a concrete checkpoint against which to test forecasts against business development.
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