Shares in Imperial Brands (LON:IMB) have climbed higher in today’s trading as the tobacco maker reaffirmed its expectations for the full-year. The company further said that its new generation products (NGP) were performing well, and said that it expects the business to contribute to group profit as Imperial exits FY19.
As of 09:48 BST, Imperial Brands’ share price had added 0.42 percent to 2,620.50p, marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.14 percent higher at 7,468.97 points. The group’s shares have lost more than 18 percent of their value over the past year, as compared with about a 2.4-percent gain in the Footsie.
Imperial Brands updates on trading
Imperial Brands said in a statement this morning that it was on track to deliver constant currency revenue and earnings in line with the guidance range for the financial year ending on September 30. The group said that its NGP business was also on track with sales, with its myblu product building in key vapour markets.
“Our NGP ambitions are reflected in our management incentives to deliver compound annual revenue growth of 35-150 percent over the three years to FY20,” Imperial Brands pointed out, adding that it expects the business “to begin to contribute to Group profit as we exit FY19, with margins continuing to build thereafter”.
Analysts on blue-chip tobacco maker
Liberum Capital reaffirmed Imperial Brands as a ‘buy’ today, without specifying a price target on the shares, while last week, Goldman Sachs, which is ‘neutral’ on the shares, set a price target of 3,350p. According to MarketBeat, the blue-chip group currently has a consensus ‘buy’ rating and an average price target of 3,407.35p.