WS Investor
07 Sep 2026, 15:39
British American Tobacco Stock in Focus as Morgan Stanley Reiterates Overweight Rating
British American Tobacco (NYSE: BTI) received continued backing from Morgan Stanley, which reiterated its *Overweight* rating on the tobacco company.
Morgan Stanley maintained a *$68.10 price target* for BTI. With the stock trading around *$55.37*, the target implies approximately *23% upside* from current levels.
The positive stance comes as British American Tobacco continues its transition beyond traditional cigarettes toward reduced-risk and smokeless products, including vaping, heated tobacco and nicotine pouches. The company remains one of the world’s largest tobacco groups, supported by established cigarette brands and growing exposure to alternative nicotine categories.
Morgan Stanley’s Overweight rating suggests it expects BTI to outperform relative to its coverage universe. The combination of the company’s defensive cash-generating tobacco business, dividend profile and longer-term shift toward smokeless products remains central to the investment case.
With BTI trading well below Morgan Stanley’s $68.10 target, the analyst sees meaningful potential upside despite regulatory risks and the structural decline in traditional cigarette consumption.
British American Tobacco (NYSE: BTI) received continued backing from Morgan Stanley, which reiterated its *Overweight* rating on the tobacco company.
Morgan Stanley maintained a *$68.10 price target* for BTI. With the stock trading around *$55.37*, the target implies approximately *23% upside* from current levels.
The positive stance comes as British American Tobacco continues its transition beyond traditional cigarettes toward reduced-risk and smokeless products, including vaping, heated tobacco and nicotine pouches. The company remains one of the world’s largest tobacco groups, supported by established cigarette brands and growing exposure to alternative nicotine categories.
Morgan Stanley’s Overweight rating suggests it expects BTI to outperform relative to its coverage universe. The combination of the company’s defensive cash-generating tobacco business, dividend profile and longer-term shift toward smokeless products remains central to the investment case.
With BTI trading well below Morgan Stanley’s $68.10 target, the analyst sees meaningful potential upside despite regulatory risks and the structural decline in traditional cigarette consumption.
