Imperial Brands Earnings: Price Hikes and Cost Controls Drive Another Decent Performance

Imperial Brands reported first-half fiscal 2023 results that beat our estimate of operating income, although turnover was a little light. This was a decent quarter and Imperial appears to be delivering on its operational turnaround and seems likely to meet management's guidance this year and beyond. We are reiterating our GBX 2,900 fair value estimate and believe the current market valuation undervalues the future cash flows of the business and provides an attractive investment opportunity for long-term investors.