Shares in Imperial Brands PLC (LSE:IMB) rose 2% on Tuesday after Panmure Liberum reiterated its Buy rating and 3,900p target price, praising the tobacco group’s consistency and capital returns.
The rally also helped lift British American Tobacco, which gained in sympathy.
In a note titled “The Magnificent One,” the broker said Imperial’s share price had climbed 40% over the past year, outperforming global technology heavyweights such as Microsoft, Amazon, Meta and Apple, while offering “lower volatility and a higher yield” (Panmure Liberum).
The analysts noted that full-year trading was in line with guidance and that adjusted earnings per share are expected to show high single-digit growth, helped by a further 5% reduction in the share count.
Imperial’s £1.45 billion buyback for the current year, up from £1.25 billion previously, was described as “largely self-financing,” following three years of repurchases that have cut equity by 16% and saved over £240 million annually in dividend costs.
Panmure said the stock remains attractive, trading on just nine times forecast 2026 earnings and yielding about 5.6%, with another 6% of shares set to be bought back this year. “This is easy. Buy,” the broker concluded.
Imps' shares rose 63p to 3,067p, while BATs' were up 61p at 3,846p.