Tobacco company Imperial Brands PLC (LSE:IMB), whose key brands include JPS, Davidoff and Gauloises, has a pre-close trading update due on Thursday, October 6.
In the results lead-up, UBS also upgraded to a “buy” and noted in a recent industry conference, the key messages from the company chiefs were about improving market share trends in its top five markets, further growth in next-generation products with losses moderating and that it was on track for a "meaningful and systematic buyback".
Fellow global investment bank Credit Suisse also gave an “outperform” rating and an upgraded share price target of 2,550p from 2,300p.
According to analysts at AJ Bell, “investors appear to be putting aside their doubts over the long-term future of smoking and how Imperial Brands can adapt in the face of ongoing regulatory pushback by developing its next-generation products, in favour of the relative short-term dependability of demand at a time when the economic outlook is so uncertain".
Imperial Brands has set revenue growth guidance between zilch to 1% on a constant currency basis and a 1% increase in operating profit.
Analysts have penciled in a profit forecast of £3.7bn against £3.6bn this time last year.
As for cash returns to investors, AJ Bell noted: “Imperial Brands will most likely leave the declaration of the full-year dividend until the full-year results in November, but analysts are looking for a 2% increase in the full-year payment to 142p a share.