Report
Philip Gorham, CFA, FRM
EUR 147.86 For Business Accounts Only

Imperial Bucks Trend and Pursues Brand Purge Strategy; Cost Opportunity Priced In

Although we believe the opportunities are priced into the stock of Imperial Brands, we continue to admire the strategies being pursued at this wide moat-rated company. We think the current efficiency drive will offset volume declines and catapult Imperial to the top tier of global cigarette manufacturers, with EBIT margins in the high 30% range by the end of our five-year forecast period. Its simplified product portfolio should also lend support to its cost advantage, a key source of our wide ec...
Underlying
Imperial Brands PLC

Imperial Brands is comprised of two distinct businesses: Tobacco and Logistics. The Tobacco business comprises the manufacture, marketing and sale of tobacco and tobacco-related products, including sales to (but not by) the Logistics business. The Logistics business comprises the distribution of tobacco products for tobacco product manufacturers, including Co., as well as a range of non-tobacco products and services.

Provider
Morningstar
Morningstar

Morningstar, Inc. is a leading provider of independent investment research in North America, Europe, Australia, and Asia. The company offer an extensive line of products and services for individual investors, financial advisors, asset managers, and retirement plan providers and sponsors.

Morningstar provides data on approximately 530,000 investment offerings, including stocks, mutual funds, and similar vehicles, along with real-time global market data on more than 18 million equities, indexes, futures, options, commodities, and precious metals, in addition to foreign exchange and Treasury markets. Morningstar also offers investment management services through its investment advisory subsidiaries and had approximately $185 billion in assets under advisement and management as of June 30, 2016.

We have operations in 27 countries.

Analysts
Philip Gorham, CFA, FRM

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