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 of recent investments presented during the company's latest capital markets day.
Despite this upward adjustment, 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 new price target reflects an improved sector valuation, indicating a cautious optimism in the tobacco market.