British American Tobacco price target raised to $34.50 from $33 at Morgan Stanley

Morgan Stanley raised the firm’s price target on British American Tobacco (BTI) to $34.50 from $33 and keeps an Underweight rating on the shares. The firm updated its model following the company’s pre-close trading update, adding that it is making no material changes to its operating forecasts. Morgan Stanley added, however, that it remains relatively Underweight on the shares given challenges in the company’s U.S. business that are expected to result in continued weak growth vs peers, and higher leverage potentially impacting capital allocation from FY26.