Imperial Brands: City Alight With BNP Paribas Prediction Japan Tobacco Bid By End Of 2017
The depressed price of Imperial Brands makes it very vulnerable to the prediction of BNP Paribas coming true, and a £50 a share target could come true given the way that even at £32 a share, the average analyst’s target here is £41.
The scenario which is expected is that Japan or China Tobacco could bid for Imperial, and then sell on key assets. Some of the largest investment banks have recommended that institutions start stakebuilding at current levels as long term M&A potiential becomes more compelling.
in addition to this, even after the summer slap to tobacco stocks by the FDA with its proposal to reduce nicotine in cigarrettes to non-addictive levels did not cause the share price of Imperial Brands to fall below the key £30 level.
Indeed, earlier this month we have seen the stock gap higher and break a signficant downtrend line running above 3,200p. All of this suggests that at least from a technical perspective, if not a fundamental one, the value argument is copper bottomed around current levels.