British American Tobacco PLC (LSE:BATS) is set to post lower half-year revenues with its interim statement next week (Thurs 25 July), according to Deutsche Bank analysts.
Revenues at the Lucky Strike, Kent and Dunhill owner have declined by 4.4% to £12.85 billion over the past six months, suggest the broker, with adjusted profits 6.2% lower at £5.65 billion.
That implies a margin drop of 110bps to 43.9%, which the broker said would mean EPS falling 6.5% to 170.5p.
Changes in foreign exchange and ongoing battles in US Combustibles are longer-term issues, but despite all this, the broker remains a buyer with a price target of 3,450p.