Shares round-up: Imperial Brands and two FTSE 250 hot stocks
This trio of shares are among the best performers this session, far exceeding broader market returns. City writer Graeme Evans explains why they’re in such high demand.
15th July 2026 15:39
by Graeme Evans from interactive investor
The 6.5% yielding shares of Imperial Brands (LSE:IMB) were today in demand as buyers also circled two of the FTSE 250’s hottest stocks in Galliford Try Holdings (LSE:GFRD) and Watches of Switzerland Group (LSE:WOSG).
The support for the Bristol-based tobacco group follows a 13% slide since April, when a disappointing update pointed to slightly reduced share in its five top markets.
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The shares today put back 67p to 2,739p as one of the best performers in the FTSE 100 index after Bank of America said the recent derating offered an attractive entry point.
The bank noted that Imperial was currently trading on 7.6 times 12 month forward earnings, which is down from nine times prior to the April update.
Subsequent half-year results in May showed soft adjusted earnings growth of 0.6% but BofA said this was largely driven by £50 million of one-off headwinds rather than a deterioration in the underlying business.
It remains confident that the group will meet its full-year earnings growth guidance of between 3% and 5%, which in turn should bolster confidence in 2027 trading as the contribution from Middle East and Africa operations also becomes more important.
As well as potential share price upside heading into November’s annual results, the bank highlighted Imperial’s share buyback capacity and a projected dividend yield of 6.6% based on 2027 forecasts. This compares with the median for the tobacco sector of 5.9%.
The bank switched to a Buy stance with a 20% upside on last night’s price to 3,200p.
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BofA added: “Share price momentum and investor confidence should improve, as we expect 2026 results in November to reassure on the group’s growth algorithm and as investors start to look towards a stronger 2027.”
Today’s improvement for Imperial shares, which contrasted with a flat performance by peer British American Tobacco (LSE:BATS), came during a subdued session for the wider FTSE 100 index.
In the FTSE 250, Galliford Try rose 24.3p to 564.3p after its year-end update pointed to a performance at the top end of expectations and a sixth consecutive period of annual revenue, profit and cash growth.
The shares of the construction and infrastructure specialist have risen 37% since last September and doubled in value since the summer of 2024.
Brokers Peel Hunt and Berenberg today forecast further upside based on the potential of Galiford’s leading positions in structurally attractive markets such as health, education, defence and the water industry.
Galliford, which offloaded its Linden Homes and Partnerships operations to Vistry Group (LSE:VTY) at the start of 2020, said new projects included a £60 million munitions handling facility at RAF Lakenheath and an affordable housing scheme for Clarion Housing in Chester.
It also reiterated 2030 growth strategy targets, which include a divisional margin of 4%.
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Peel Hunt said: “Galliford remains in great shape, in our view, delivering strategic, operational, and financial progress.
“Given the momentum, visibility on the 2030 growth targets, and capital allocation options, we increase our target price from 650p to 700p.”
Berenberg said the strength of Galliford’s order book provided “excellent visibility” as it increased earnings per share forecasts for 2026-28 by 11% on average, leading to an improved price target of 680p.
Watches of Switzerland Group (LSE:WOSG) shares today traded at their highest level in more than three years after yesterday’s record annual results continued the momentum seen since the luxury watches retailer upgraded guidance in May.
Chief executive Brian Duffy reported a step-up in financial performance and said the Rolex, TAG Heuer and Breitling retailer had a substantial runway for long-term growth in terms of both revenue and profit.
He added: “The US represents a major opportunity, with considerable potential for further growth and market share gains. In our home market, the UK, the trading backdrop is showing encouraging signs of improvement.”
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The shares today rose 27.5p to 777p, representing a jump of 48% since the May upgrade and 120% in the past year.
Barclays today lifted its price target to 845p from 825p, while UBS has added 40p to its estimate at 890p. The latter said: “Overall, we remain constructive on WOSG’s growth drivers, viewing it as an attractive play on hard luxury and the US market. We continue to see scope for consensus upgrades later in the year and ongoing multiple re-rating.”
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