Imperial Brands Earnings: Performance in Line With Expectations and Buybacks Increased

Wide-moat Imperial Brands reported a preliminary fiscal 2023 trading update indicating that the full-year performance will be in line with management's guidance and our forecasts. The market reacted positively, with the stock up almost 4% as of the close of trading on Oct. 5, most likely due to the announcement of increased share repurchases in the next fiscal year. We are reiterating our GBX 2,900 fair value estimate and wide moat rating, and continue to believe the current market valuation undervalues the future cash flows of the business and provides an attractive investment opportunity for long-term investors.