** The U.S. FDA on Thursday issues a proposal to ban menthol cigarettes and flavored cigars, a move that could knock sales at tobacco firms (Full Story)

** Brokerage Jefferies, however, says a menthol ban is likely, but it is "still years away"; does not see a ban happening until 2026 at earliest

** "We think a flavored cigar ban is likely to come sooner, by mid-2024" - Jefferies

** There is little impact on nicotine volumes, Jefferies notes, saying menthol bans in both Canada and the EU shows very few smokers quit nicotine

** Says British America Tobacco BATS.L, despite its menthol exposure, is better placed than one would expect and its share price could take a hit of just 12%

** For Altria Group MO.N, a menthol ban provides more incentive to take control of e-cigarette maker Juul, a move that could materially lessen the downside

** MO acquired a 35% stake in Juul in 2018

(Reporting by Deborah Sophia in Bengaluru)

(( DeborahMary.Sophia@thomsonreuters.com ;))

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