# BAT sees signs of recovery for Vuse in US amid crackdown on illicit vapes

By Derren Nathan — 2025-12-09

Derren Nathan, head of equity research at Hargreaves Lansdown, said: “British American Tobacco (BATS) has picked up the pace of trading in the second half and remains on track to hit the top end of revenue growth guidance.

“Reading between the lines, pricing and mix look to have driven further value share gains in US cigarette markets, offsetting the impact of more punitive taxes and regulations in other territories.

“The step up in new category growth to reach double digits in the second half of the year reflects further market share growth in oral tobacco.

“BATS is also seeing the emerging benefits of a clampdown by the US authorities on competition from illegal vapes.

“The company is confident of returning to its medium-term growth ambition next year, albeit at the lower end of 3-5 per cent revenue growth and 4-6 per cent growth in underlying operating profit.

“The strong recovery in the share price this year suggests markets may have been hoping for more, but a new share buyback programme should keep markets happy for now.

“That does however put some pressure to bring net debt back into the company’s target range next year.”

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