BofA Sees FY26 EBIT Beat Potential from Imperial Brands; Buy Rating Kept

07:24 AM EDT, 09/18/2026 (MT Newswires) -- BofA Global Research maintained Imperial Brands' (IMB.L) buy rating, with a price objective of 32 pounds sterling, as analysts expect the British tobacco company to surpass fiscal 2026 EBIT expectations. The research firm said Thursday it anticipates easing Australian drag and a 0.4-percentage-point EBIT boost from the Taiwan divestment to set up "stronger" fiscal second-half momentum, positioning a potential fiscal 2026 constant-currency EBIT growth beat as the primary near-term catalyst for the shares. Analysts noted that while accelerating 2027 EBIT growth could drive consensus higher, they do not expect management to offer explicit guidance at the fiscal 2026 results on Nov. 17, 2026. "At the FY26 results, we think management is likely to reiterate its +3%-5% EBIT growth without indicating where growth may fall within the range, despite FY27 tailwinds from: 1) lapping of Australia, 2) US one-offs, 3) accelerated savings from Taiwan and Germany, and 4) US duty drawback benefit expected from 2H27 (BofAe cGBP40m of incremental sales). We expect management to temper investor expectations on FY27 by highlighting the excise tax increase in Germany," BofA wrote.