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BAT share price volatile as group updates on H1 trading

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Shares in British American Tobacco (LON:BATS) have fallen deep into the red in London this afternoon, having spiked in morning trade, with investors digesting the tobacco manufacturer’s pre-closing trading update. The company said that its trading was in line with expectations and that its adjusted revenue and profit growth will be weighted to the second half of its financial year.

As of 13:21 BST, BAT’s share price had given up 1.25 percent to 3,699.50p, having traded more than two percent higher earlier in the session. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.26 percent in the red at 7,716.93 points.

BAT updates on trading

British American Tobacco announced in a pre-closing statement today that its business had continued to perform in line with expectations in the first half of the company’s financial year. The blue-chip tobacco maker expects its adjusted revenue and adjusted profit growth to be weighted to the second half of the year, as the impact of a number of significant events affecting the comparison with H1 2017 unwind. The group’s  adjusted constant currency earnings-per-share growth meanwhile is expected to be impacted by a currency translation headwind of around nine percent for the first half and six percent for the full year, assuming exchange rates remain unchanged for the remainder of the year.

Analysts on FTSE 100 group

DZ Bank reiterated its ‘neutral’ rating on BAT today, without specifying a price target on the shares, while JPMorgan Chase & Co, which sees the blue-chip group as a ‘buy,’ set a valuation on the stock of 5,185p. According to MarketBeat, the FTSE 100 tobacco group currently has a consensus ‘buy’ rating and an average price target of 3,691.91p.

As of 13:57 BST, Tuesday, 12 June, British American Tobacco plc share price is 4,741.00p.

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