STOCKWATCH Imperial Tobacco edges up after Credit Suisse ups to 'outperform'

LONDON, May 09, 2008 (Thomson Financial via COMTEX) -- -- Shares in Imperial Tobacco Group Plc were higher in early trade after, according to dealers, with Credit Suisse upping its rating on the company to 'outperform' from 'neutral' and upped the target price to 2,750 pence, from 2,550 pence.

At 8.22 a.m., Imperial Tobacco was 8 pence higher at 2,492. The FTSE 100 was down 29.2 points at 6,241.6.

In a note to clients, Credit Suisse said it thinks Imperial's shares are poised to re-rate to P/E levels more in line with rivals such as British American Tobacco Plc.

It said it would buy the shares ahead of upcoming interim results. At 13.2 times 2009 earnings, the company trades at a 10 percent discount to BAT, said the broker.

brian.gorman@thomsonreuters.com btg/nes

COPYRIGHT

Copyright Thomson Financial News Limited 2008. All rights reserved. The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.

MMMM

Morning Coffee with TradingMarkets -- Free Newsletter

More News:   Market Updates | Stock Alerts | All Trading News | Stock Index