Imperial Brands share price: Liberum upbeat on group

Imperial Brands share price: Liberum upbeat on group
Written by:
Tsveta van Son
14th June 2019
Updated: 11th March 2020

Analysts at Liberum remain bullish on Imperial Brands (LON:IMB), arguing that the blue-chip tobacco maker could be one of the ‘most attractive’ consumer staples stocks if it can restore its credibility, Citywire reports. The comments came after the FTSE 100 company updated investors on its half-year performance last month, posting a fall in tobacco volume, while reassuring investors that it was on track to deliver growth in revenue, adjusted earnings per share and cash conversion in line with full-year expectations.

Imperial Brands’ share price has fallen deep into the red in London this morning, having given up 1.20 percent to 1,987.80p as of 08:53 BST. The stock is underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.37 percent lower at 7,341.20 points. The group’s shares have given up more than 23 percent of their value over the past year, as compared with about a 5.4-percent fall in the Footsie.

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Liberum upbeat on Imperial Brands

Liberum Capital reaffirmed the blue-chip cigarette maker as a ‘buy’ yesterday, with a target of 2,950p on the Imperial Brands share price. Citywire quoted the broker’s analyst Nico von Stackelberg as commenting that Liberum continued to believe that the FTSE 100 tobacco maker was “one of the most attractive investment opportunities in consumer staples”.

“It could be even better by restoring credibility and confidence. We want to see the group formally revise its capital allocation strategy, follow best practices […] fix incentive problems, and accelerate its next generation product performance,” the analyst pointed out.

Other analysts on FTSE 100 company

Earlier this month, analysts at Barclays reaffirmed the company as an ‘overweight,’ without specifying a target on the Imperial Brands share price. According to MarketBeat, the FTSE 100 cigarette maker currently has a consensus ‘buy’ rating and an average valuation of 3,029.29p.

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