Jefferies has assumed coverage on tobacco group Imperial Brands (LON:IMB) by moving its recommendation to 'buy' from 'hold' saying that it believes the actions the company has taken has positioned it well to deliver earnings per share growth of mid-single digit over the medium to long term.
It added: "This in turn should support a continued 10% dividend increase each year. We still believe the valuation is yet to be given full credit for this attractive returns outlook."
The broker has increased its price target to 4,600 pence a share (from 3,550 pence).
At 1:51pm: (LON:IMB) Imperial Brands Plc share price was -79.75p at 3927.25p