UBS has raised its target price for British American Tobacco (BAT) to 3000 pence while keeping a "Neutral" rating.

Analyst Faham Baig pointed out the positive results from recent investments presented during the company's latest capital markets day.

Despite this positive outlook, Baig acknowledged that the market environment is still dynamic, which could lead to discussions about reducing BAT's stake in the Indian conglomerate ITC.

The updated price target reflects a broader increase in industry valuations, indicating a favorable shift in market sentiment.

BAT shares have seen a slight increase, trading at around €35.91 on various exchanges, showing a positive market response to UBS's revised outlook.