On Monday, Imperial Brands (OTC:IMBBY) stock maintained its Buy rating and a price target of GBP28.35, as reiterated by analysts at Citi. The tobacco company is anticipated to present an updated strategic plan for 2026-2030 during its Capital Market Event scheduled for Wednesday, March 26th. Citi analysts predict the plan to reflect an evolution of the company’s current strategies rather than a complete overhaul.
The forthcoming strategic plan is expected to build upon the solid foundation that management has established, potentially introducing minor positive adjustments to the mid-term growth outlook. Furthermore, current consensus estimates for the company’s outer-year earnings before interest and taxes (EBIT) are considered conservative, suggesting there may be room for upward revisions.
Despite a year-to-date performance that has not stood out, Citi analysts believe that the risk/reward profile for Imperial Brands stock is tilted favorably. This optimism is supported by the company’s strong and defensive business model. Additionally, with investor sentiment leaning towards a long position and the likelihood that fiscal year 2025 guidance will be confirmed, the analysts see potential for the stock’s value to increase following the Capital Market Event.
Imperial Brands is set to share its vision and strategy for the next several years, aiming to continue its growth trajectory. The company’s management is expected to leverage the firm’s existing strengths while making strategic enhancements to foster mid-term growth. This approach, coupled with the possibility of raising future EBIT forecasts, may contribute to a more positive outlook for the company’s financial performance.
The Citi analysts’ reiteration of the Buy rating underscores their confidence in Imperial Brands’ prospects. Investors and stakeholders will be looking forward to the details of the new strategic plan, which could provide further insight into the company’s direction and potential for stock appreciation.
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