Jefferies cuts target for Imperial Brands stock from GBp 3,500 to GBp 2,700

Published on 10/27/2026 at 12:47 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Profit growth guidance is 3.00 to 5.00 percent for fiscal 2026. Imperial Brands stock costs EUR 34.31 on October 27, 2026, 0.15 percent below Xetra close.

Analyst view and operating outlook

Jefferies cut its Imperial Brands target from GBp 3,500 to GBp 2,700 on October 19, 2026.
Fiscal 2026 adjusted operating profit growth is expected at 3.00 to 5.00 percent.
Imperial Brands stock trades at EUR 34.31 at 12:41 p.m. CET at Lang & Schwarz on October 27, 2026, 0.15 percent below the Xetra close of October 26, 2026.

Imperial Brands, GB0004544929, Illustration mit AI erstellt.

Imperial Brands (ISIN GB0004544929) faced a lower analyst valuation after Jefferies cut its price target from GBp 3,500 to GBp 2,700 on October 19, 2026, according to MarketScreener. The stock was trading at EUR 34.31 at Lang & Schwarz on October 27, 2026 at 12:41 p.m. CET, down 0.15 percent versus the Xetra close of October 26, 2026 at EUR 34.36.

Jefferies target drops to GBp 2,700

The downgrade moved Jefferies from Buy to Hold and reduced its target by GBp 800. The cited report said Imperial Brands traded at 6.5 times calendar 2027 earnings and that the broker saw less valuation upside after the change in its outlook for the tobacco group.

The analyst action adds a counterweight to Imperial Brands' operating message. In its October 8, 2026 pre-close update, the company said adjusted operating profit growth remained on track for its 3.00 to 5.00 percent fiscal 2026 guidance range, while adjusted earnings per share growth was expected to be in the high-single-digit range, according to Imperial Brands.

What does the buyback mean for returns?

The company also announced a GBP 1.5 billion share buyback for fiscal 2027 after completing a GBP 1.45 billion program for fiscal 2026. Imperial Brands expects the new program to finish by October 29, 2027, while free cash flow for fiscal 2026 is projected to exceed GBP 2.2 billion. The update also pointed to double-digit net revenue growth in next-generation products, set against low-single-digit tobacco volume declines.

Next dates carry the decision

Imperial Brands will publish its annual results for the year ended September 30, 2026, on November 17, 2026. The company also set October 29, 2027, as the latest completion date for the new buyback, according to Imperial Brands. The November results will test whether the promised cash generation can support the shareholder-return plan while the analyst target remains lower.

Stock weighs targets against cash returns

For investors, the central tension is clear: Imperial Brands combines a large capital-return program with an analyst warning about slower future profit growth. Its market capitalization was EUR 25.7 billion as of October 27, 2026, while the same euro quote showed a 52-week range of EUR 28.30 to EUR 38.40.

Imperial Brands was trading at EUR 34.31 at Lang & Schwarz on October 27, 2026 at 12:41 p.m. CET, 0.15 percent below the Xetra close of October 26, 2026 at EUR 34.36. The further course of trading is shown by the continuously updated real-time quote of Imperial Brands stock.