News Flash: Analysts Just Made A Notable Upgrade To Their British American Tobacco (Malaysia) Berhad (KLSE:BAT) Forecasts

Simply Wall St

Tue, February 17, 2026 at 7:31 AM GMT+9 3 min read

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British American Tobacco (Malaysia) Berhad (KLSE:BAT) shareholders will have a reason to smile today, with the covering analyst making substantial upgrades to this year’s forecasts. Consensus estimates suggest investors could expect greatly increased statutory revenues and earnings per share, with the analyst modelling a real improvement in business performance. The market may be pricing in some blue sky too, with the share price gaining 36% to RM6.23 in the last 7 days. It will be interesting to see if today’s upgrade is enough to propel the stock even higher.

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Following the latest upgrade, the one analyst covering British American Tobacco (Malaysia) Berhad provided consensus estimates of RM2.0b revenue in 2026, which would reflect an uncomfortable 8.0% decline on its sales over the past 12 months. Statutory earnings per share are supposed to shrink 5.4% to RM0.67 in the same period. Prior to this update, the analyst had been forecasting revenues of RM1.6b and earnings per share (EPS) of RM0.37 in 2026. So we can see there’s been a pretty clear increase in analyst sentiment in recent times, with both revenues and earnings per share receiving a decent lift in the latest estimates.

View our latest analysis for British American Tobacco (Malaysia) Berhad

KLSE:BAT Earnings and Revenue Growth February 16th 2026

With these upgrades, we’re not surprised to see that the analyst has lifted their price target 71% to RM6.51 per share.

Of course, another way to look at these forecasts is to place them into context against the industry itself. These estimates imply that sales are expected to slow, with a forecast annualised revenue decline of 8.0% by the end of 2026. This indicates a significant reduction from annual growth of 0.9% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 5.4% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - British American Tobacco (Malaysia) Berhad is expected to lag the wider industry.

The Bottom Line

The most important thing to take away from this upgrade is that the analyst upgraded their earnings per share estimates for this year, expecting improving business conditions. Pleasantly, the analyst also upgraded their revenue estimates, and their forecasts suggest the business is expected to grow slower than the wider market. Given that the consensus looks almost universally bullish, with a substantial increase to forecasts and a higher price target, British American Tobacco (Malaysia) Berhad could be worth investigating further.

Story Continues  

The covering analyst is clearly in love with British American Tobacco (Malaysia) Berhad at the moment, but before diving in - you should be aware that we’ve identified some warning flags with the business, such as its declining profit margins. You can learn more, and discover the 3 other concerns we’ve identified, for free on our platform here.

Another thing to consider is whether management and directors have been buying or selling stock recently. We provide an overview of all open market stock trades for the last twelve months on our platform, here.

Have feedback on this article? Concerned about the content? Get in touch** with us directly.**_ Alternatively, email editorial-team (at) simplywallst.com._

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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