Imperial Back on Track For Financial Performance Improvement in 1H Fiscal 2022; Shares Undervalued

Imperial's strategy on operational focus and financial improvement was apparent in the firm's impressive interim 2022 results. Operating profit was slightly above our forecast, with volume and revenue in line with our forecast, confirming that volume trends and market share appear to have stabilized in the company's core markets. We are retaining our GBX 2,900 fair value estimate, and believe the market valuation as of the close of business on May 17 undervalues the stock.