BUZZ-BAT, Imperial Brands soar after Trump withdraws menthol ban plan

Shares of BAT BATS.L up 4.3% at 3137p, top gainer on FTSE 100 index .FTSE

Peer Imperial Brands IMB.L up as much as 2.4% at 2,693p - hit highest level in nearly 6 years

Trump administration withdraws FDA plan to ban menthol cigarettes

Menthol cigarettes comprise a third of tobacco industry's total U.S. market share

UBS also upgrades BAT to "buy" from "neutral", saying regulatory headwinds could be behind

UBS cites upgrade to acceleration in sales growth of BAT's new categories; also flexibility in BAT's stake in ITC ITC.NS

UBS raises BAT PT to 3,900p from 3,000p; new PT implies upside of ~30%

BAT hit highest since March 2023

8 of 13 analysts covering BAT have "buy" or higher rating, 4 "hold" while 1 "sell" or lower; median PT 3250p - data compiled by LSEG

Despite growth, global expansion of Chinese vapour manufacturers' poses challenge to tobacco companies - UBS