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Investing.com - Jefferies initiated coverage on Imperial Brands (LON:IMB) (OTC:IMBBY) with a Buy rating and a price target of GBP36.00.
The rating comes after Imperial Brands has shown steady market share gains in its core combustibles business following a management overhaul in 2020, according to Jefferies.
The tobacco company’s smoke-free products strategy is beginning to demonstrate success, particularly in the U.S. modern oral category, Jefferies noted in its analysis.
Jefferies highlighted Imperial Brands’ strong balance sheet and substantial cash returns to shareholders as positive factors supporting its investment case.
The firm pointed out that Imperial Brands currently trades at what it describes as a "tobacco-wide trough" price-to-earnings ratio of 8.5x for calendar year 2026, which Jefferies believes has room for improvement.
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