Imperial Brands stock gets a 3,500 GBp analyst target

Published on 10/03/2026 at 21:22 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Morningstar lifted its fair value to GBp 3,400 from GBp 3,300 on September 21, 2026. H1 adjusted EPS rose 5.3 percent to 127.7 pence.

Imperial Brands PLC GB0004544929: Aquarell von Bristol mit Hafen — Imperial Brands PLC (GB0004544929) präsentiert Bristol als Aquarell mit Hafen, bunten Häusern und Hängebrücke, Illustration mit AI erstellt.

Imperial Brands stock carries a GBp 3,500 analyst target after the tobacco group continued its GBP 1.45 billion buyback program. The shares were last at GBp 2,443 on the LSE on October 2, 2026, with a 0.78 percent daily change from GBp 2,424.

Buyback supports the valuation

The Globe and Mail reported that Imperial Brands bought back 266,947 ordinary shares on September 25, 2026, at an average GBp 2,445.1131, reducing shares in issue to 759,934,096. The same update cited a Buy rating and a GBp 3,500 target.

The target is 43.3 percent above the October 2 price, a gap that gives the buyback a direct valuation role. Imperial Brands had a market capitalization of GBP 18.6 billion and traded within a GBp 2,408 to GBp 3,632.04 52-week range on that date.

H1 growth meets guidance

Parqet reported that H1 2026 currency-adjusted net revenue from tobacco and next-generation products rose 1.8 percent, while adjusted EPS increased 5.3 percent to 127.7 pence. Adjusted operating profit rose 0.6 percent on a currency-adjusted basis, and next-generation product revenue increased 7.5 percent.

The company kept fiscal 2026 guidance for adjusted operating profit growth of 3 percent to 5 percent, while 12-month free cash flow stood at GBP 2.6 billion and operating cash conversion reached 98 percent. The mix matters: pricing and buybacks are offsetting pressure from declining combustible volumes, while next-generation products remain a smaller growth engine.

Analysts weigh growth risks

Morningstar raised its fair value estimate to GBp 3,400 from GBp 3,300 on September 21, 2026. Its analysis also cited 20 percent year-to-date share declines and a 1.4 percent forecast for average annual revenue growth over the next five years.

The counterweight is execution risk in the United States next-generation market and continued market-share pressure in major markets. Imperial Brands is scheduled to publish fiscal 2026 results on November 17, 2026, according to MarketScreener.

Stock remains below yearly high

At GBp 2,443 on October 2, 2026, Imperial Brands stock stood 32.7 percent below its 52-week high of GBp 3,632.04. The valuation debate therefore centers on whether buybacks and pricing power can outpace volume and next-generation product risks.