Imperial Tobacco says trade is in line with its expectations
IMPERIAL TOBACCO, the world’s fourth-biggest cigarette group, yesterday said trading in its financial year to the end of September was in line with its expectations.
The group, which makes Lambert & Butler cigarettes, also said its integration of acquisition Altadis is on track to deliver expected cost savings.
Analysts expect the group to issue earnings-per-share of 159.5p, a rise of 16.5 per cent, when it reports the full-year results on 10 November.
RBS analyst Julian Hardwick said the firm’s shares, which rose by 6p to £17.58 yesterday, look cheap compared to rival British American Tobacco.
He added: “We continue to see tobacco as the most attractive of the European consumer staples sectors, and Imperial… remains the best way to play the space, in our view.”
Bank of America Merrill Lynch analyst Nico Lambrechts said: “We believe that the share price is too low for a company with a resilient, and growing, earnings stream… and a high dividend yield of 4.8 per cent.”
The firm acquired Franco-Spanish group Altadis in January 2008, adding brands such as Gauloises and Fortuna to its portfolio.