Jefferies cuts target for Imperial Brands stock to GBp 2,700

Published on 10/22/2026 at 12:44 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Imperial Brands stock costs EUR 34.19 on October 22, 2026, 1.09 percent above the Xetra close. Full-year results are due November 17, 2026.

Broker risk meets capital returns

Jefferies cut its Imperial Brands target from GBp 3,500 to GBp 2,700 on October 19, 2026.
Imperial Brands announced a GBP 1.5 billion buyback for fiscal 2027 on October 8, 2026.
Imperial Brands stock trades at EUR 34.19 at 12:38 p.m. CEST at Lang & Schwarz on October 22, 2026, 1.09 percent above the Xetra close of October 21, 2026.

Imperial Brands PLC GB0004544929: Trading-Floor London mit Kurscharts — Imperial Brands PLC (GB0004544929): Börsen-Editorial zeigt Trading-Floor in London mit abstrakten Kurscharts und Händlern, Illustration mit AI erstellt.

Imperial Brands (ISIN GB0004544929) was trading at EUR 34.19 at Lang & Schwarz on October 22, 2026, 1.09 percent above the Xetra close of October 21, 2026. The immediate catalyst is a Jefferies downgrade that cut its target from GBp 3,500 to GBp 2,700 on October 19, 2026, according to Yahoo Finance.

Buyback supports the investment case

Imperial Brands had announced a GBP 1.5 billion share buyback for fiscal 2027 in its October 8, 2026 pre-close update. The company also said adjusted operating profit growth should remain within its 3.00 to 5.00 percent guidance range, adjusted earnings per share should grow at a high-single-digit rate, and free cash flow should exceed GBP 2.2 billion, according to Imperial Brands.

The same update described double-digit net revenue growth in next-generation products and low-single-digit tobacco net revenue growth for fiscal 2026. It also set a savings ambition of at least GBP 320 million by 2030, while fiscal 2026 leverage was expected at the lower end of the 2.0 to 2.5 net debt-to-EBITDA range.

Three dates changed the picture

On September 21, 2026, Morningstar set a fair value estimate of GBP 34; on October 8, 2026, Imperial Brands announced the GBP 1.5 billion buyback; and on October 19, 2026, Jefferies cut its target from GBp 3,500 to GBp 2,700. The Morningstar assessment and its operating context were published by Morningstar.

What does the target cut mean?

The new Jefferies target points to a more cautious view of German tobacco taxes, while Imperial Brands still has a quantified capital-return plan. The next major test is whether the company converts its GBP 2.2 billion-plus cash-flow expectation and 3.00 to 5.00 percent profit-growth guidance into the fiscal 2026 results.

Results date sets the next test

The next two dated milestones are November 17, 2026, when Imperial Brands will announce its annual results for the year ended September 30, 2026, and October 29, 2027, the latest date stated for completing the fiscal 2027 buyback. Both dates appear in the company's investor materials.

Stock stays above the Xetra close

Imperial Brands stock was trading at EUR 34.19 at Lang & Schwarz on October 22, 2026 at 12:38 p.m. CEST, plus 1.09 percent versus the Xetra close of October 21, 2026 (EUR 33.82). The euro quote sits within the 52-week range of EUR 28.30 to EUR 38.40 as of October 22, 2026. The further course of trading is shown by the continuously updated real-time quote of Imperial Brands stock.