Morgan Stanley analyst Jamie Rollo has maintained their neutral stance on MAB stock, giving a Hold rating on July 8.
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Jamie Rollo has given his Hold rating due to a combination of factors influencing Mitchells & Butlers’ current and future performance. The company has shown strong trading results, with like-for-like sales growth aligning with expectations, and it has outperformed the broader market. However, despite these positive indicators, there are concerns about future macroeconomic conditions, such as potential cost increases and consumer spending uncertainties, which could impact future earnings.
Furthermore, while Mitchells & Butlers has a well-invested and strategically positioned estate and a strong track record of sales outperformance, the recent share price increase and current valuation metrics suggest limited upside potential relative to the price target. These factors, combined with the broader economic uncertainties, lead to a cautious stance, justifying the Hold rating as the company navigates these challenges.
In another report released on July 8, J.P. Morgan also maintained a Hold rating on the stock with a £3.40 price target.