Ignore British American Tobacco PLC's (LSE:BATS) disappointing first-half numbers, suggests Jefferies, and look further out where the future appears increasingly bullish.
Stripping out Canada, the US bank pointed out that excluding US 'reduced risk products', such as vapes, sales growth "remained strong despite an inventory unwind, while there's an expected roll-out tailwind in the second half".
Within US RRPs pouches are accelerating, alongside "sizeable near-term upside potential in vape from possible illegal enforcement", reckons Jefferies.
Its recommendation remained 'buy' with a price target of £35.
Shares were down 2.4% at £27.13.