BTI Volume Plummets 37.18% to 451st Rank as Stock Defies Analysts with 5.73% Premium Despite Strategic Hotel Stake Exit

On August 12, 2025, British American Tobacco (BTI) traded with a volume of £230 million, a 37.18% decline from the previous day, ranking 451st in the market. The stock closed down 0.70% at £43.14, trading above analysts’ consensus price target of £40.67 by 5.73%. Key developments include pending Reserve Bank of India approval for BAT’s planned divestiture of its ITC Hotels stake, a strategic move to enhance financial flexibility. The company’s recent 42% quarterly share price surge aligns with broader market optimism around potential U.S. interest rate cuts, though its five-year total return of 149.12% underscores long-term resilience amid industry challenges.

Internal discussions on investment forums highlight divergent investor sentiment. Some shareholders view BAT’s nicotine pouch growth and high dividend yield (6% at £4,000p) as compelling long-term value, while others caution against overvaluation at current levels. Recent first-half earnings, which exceeded expectations, reinforced guidance for operating profit and revenue, yet market reactions to results remain uncertain. Analysts note that regulatory shifts in reduced-risk products and emerging markets could shape BAT’s strategic trajectory, though the premium valuation suggests a gap between market optimism and cautious forecasts.

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