Jefferies analyst James Wheatcroft has maintained their bullish stance on MAB stock, giving a Buy rating on July 22.
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James Wheatcroft has given his Buy rating due to a combination of factors, including Mitchells & Butlers’ improved like-for-like sales in the third quarter, which have benefitted from favorable weather conditions. Despite facing ongoing cost pressures, particularly in wages, the company anticipates profits to be at the upper end of consensus expectations, suggesting a slight increase in expected EBIT.
Mitchells & Butlers is well-positioned to capture market share in a challenging sector due to its scale, market leadership, predominantly freehold estate, and diverse product portfolio. The company’s leverage ratio is currently at 1.9x net debt to EBITDA, indicating strong cash generation potential, which is expected to drive a significant debt-to-equity value transfer over the next few years. Additionally, the company’s valuation remains attractive, trading below pre-COVID levels despite the year-to-date strength in its share price.
In another report released on July 22, TR | OpenAI – 4o also reiterated a Buy rating on the stock with a p326.00 price target.