Imperial Brands PLC (LSE:IMB) full-year results highlighted the investment case of the tobacco company, analysts said, pointing to resilient cigarette volumes, strong pricing and supportive guidance.
A new share buyback of £1.45 billion and some headline financial guidance for the coming year had already been announced, so the only surprises in the numbers were in the granular details.
Shares in the FTSE 100 group rose 2% to 3,232p by late morning on Tuesday.
RBC Capital Markets said adjusted operating profit of £3.99 billion was ahead of consensus, with top-line growth in tobacco driving the beat, while earnings per share of 315p was 0.5% above forecasts.
"This is Imperial Brands doing what it should do," the broker said, "delivering in-line results and consistent share buyback."
For 2026, the company has now provided more precise guidance, including for tobacco net revenue growth of a low-single-digit percentage and next-generation products at double-digits, versus consensus revenue forecasts for the whole group of 2.3%.
Operating profit growth of 3-5% is expected, with City analysts having been looking for around 3.9%.
Adjusted earnings per share is now guided to grow at least by a high-single digit percentage on a constant currency basis.
The company also guided for 2% to 2.5% of currency tailwinds for the full year.
These all suggest a small amount of upside potential to the current consensus for adjusted EPS growth of 9.6%, RBC said.
Jefferies said: "The combustibles business appears in good shape, with resilient volumes and continued pricing power, and the F26 guidance suggests this is likely to continue.
"As such, the core Imperial Brands investment case of value maximisation in combustibles and elevated shareholder cash returns appears reinforced by today's print."
RBC has a 'neutral' rating and a share price target of 2,400p, while Jefferies reiterated its 'buy' rating and 3,600p price target.