Imperial Brands
Note: This is a daily stock update and the information stands true as of 27/03/25, 09:00 CET.
Company Update:
These are encouraging guidance and we will upgrade, albeit modestly our numbers. Tobacco is a highly defensive sector in time of recession. Stock trades on PE 25-and 26 of 9.1x and 8.7x. More importantly, the stock yields 5.6% and 6.1% for 25 and 26. In the current environment, and considering the uncertainty on global trends, we still like Imperial Brands. We still have 10% upside but the dividend yield which is quite secure is in itself a reason to own the stock on the long run.
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Company Update:
IMB announced a five-year transformation plan to increase investments in its top five cigarette markets, strengthen its sales force, and scale up the NGP segments while maintaining the traditional segment as the main contributor.
FY25 guidance unchanged with LSD net revenue growth, and mid single digit growth for Adjusted operating profit.
Long term guidance: 3 to 5% CAGR on adjusted operating profit and high single digit growth for EPS.
FCF between GBP2.2bn and 3bn.
Overall, these are encouraging numbers. The only disappointment came from the lack of details on share buyback program.
Expert Opinion: These are encouraging guidance and we will upgrade, albeit modestly our numbers. Tobacco is a highly defensive sector in time of recession. Stock trades on PE 25-and 26 of 9.1x and 8.7x. More importantly, the stock yields 5.6% and 6.1% for 25 and 26. In the current environment, and considering the uncertainty on global trends, we still like Imperial Brands. We still have 10% upside but the dividend yield which is quite secure is in itself a reason to own the stock on the long run.
For daily updates, subscribe to our newsletter and for detailed information, reach out to us at sales@alphavalue.eu
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