British American Tobacco's shares experienced a downturn in June following a warning about potential disappointment in full-year sales and profit, attributed to an accelerating decline in global cigarette volumes. The company revised its estimates for the traditional cigarette market's contraction to 3% for 2026, up from the previously forecast 2.5%.

Despite efforts to pivot towards "smokeless" products like vapes and oral pouches, traditional cigarettes still constitute approximately four-fifths of BAT's revenue. While some analysts support the company's transformation, others express skepticism. RBC Capital Markets, for instance, projects operating profit growth of 3.6%, below management's guidance, citing the lower margins of newer nicotine sources.

However, Matthew Wright, BAT's newest non-executive director who joined the board in November, made his first purchase as a director last week. Wright acquired £247,500 worth of stock, demonstrating confidence in the company despite prevailing market concerns and analyst forecasts. This "buy the dip" strategy from a new board member signals a potentially optimistic outlook for British American Tobacco.