British American Tobacco PLC (LSE:BATS) shares fell over 8% as results from the FTSE 100 listed nicotine delivery specialist compared badly with others in the sector, analysts said.
Rae Maile at Panmure Liberum said the contrast between BAT and rival Japan Tobacco "is somewhat stark this morning, both in terms of content as well as in presentation, and not to BAT’s benefit".
Operating profit from BAT was "essentially flat", Maile said.
Furthermore, Derren Nathan, head of equity research at Hargreaves Lansdown, noted that revenue from the smokeless brands grew 8.9% "but that’s lagging the high-octane rates seen in recent years".
He says regulatory and fiscal headwinds "soured the outlook for this year with revenue growth guidance of 1% coming in way below the mid-term target of 3-5%".
Looking forward, Maile said 2025 appears set to be "another year without much to show in profit terms" as the company battles to get to 4-6% operating profit growth by 2026.
There are also "lots of moving parts" in the guidance for the current year, especially related to the timing of a final settlement in Canada after 25 years.
Maile felt that the shares are "cheap" at 9x earnings and with a yield of around 7% - but BAT is still a "rather more complicated" story that UK rival Imperial Brands on the same PE ratio and a slightly lower yield but with a buyback that continues apace.