Shares in British American Tobacco (LON:BATS) have climbed higher in today’s session, as the company reiterated its full-year guidance. The update comes after the company, which owns the Dunhill and Lucky Strike cigarette brands, said in October that it expects currency headwinds to weigh on its earnings growth this year.
As of 14:41 GMT, BAT’s share price had added 0.94 percent to 2,750.50p, marginally underperforming the broader market rally, with the benchmark FTSE 100 index currently trading 1.14 percent higher at 6,884.78 points. The group’s shares have given up more than 45 percent of their value over the past year, as compared with about an 8.3-percent dip in the Footsie.
BAT posts trading update
BAT reported in a second-half pre-closing trading update that its business continued to perform well and the group’s full-year guidance remained unchanged. The tobacco maker expects to deliver good adjusted revenue and adjusted operating profit growth, on a constant currency representative basis, with a second half weighting. The company, however, has flagged currency headwinds on its adjusted earnings per share growth of around six percent for the year at current exchange rates.
“We remain on track for a strong performance in 2018 – driven by both our combustible and PRRP [THP, Vapour and Oral] businesses,” BAT’s outgoing chief executive Nicandro Durante commented in the statement, adding that the group’s deleveraging remained on track and that the company remained “committed to a dividend pay-out ratio of at least 65 percent”.
Analysts on FTSE 100 group
Liberum Capital reiterated its ‘buy’ rating on BAT today, without specifying a price target on the shares. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 4,374.71p.
As of 15:01 GMT, Wednesday, 12 December, British American Tobacco plc share price is 2,771.00p.