James Wheatcroft, an analyst from Jefferies, maintained the Buy rating on Mitchells & Butlers. The associated price target is p355.00.
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James Wheatcroft has given his Buy rating due to a combination of factors related to Mitchells & Butlers’ operational and financial performance. He notes that the company’s interim results demonstrate solid progress despite a challenging macroeconomic backdrop, supporting confidence that full-year targets remain achievable, helped slightly by easing cost pressures.
At the same time, he acknowledges that like-for-like sales growth has recently slowed, which may weigh on the share price in the near term, but he views this as driven by temporary issues such as difficult comparisons and travel disruptions. Over a longer horizon, he highlights the group’s market share gains, strong cash generation, deleveraging potential and a valuation multiple below its historical range as key reasons the stock offers attractive upside for investors.