Jefferies hikes target for Mitchells & Butlers, expects 'material' market share gains
Analysts at Jefferies hiked their target price for shares of Mitchells & Butlers in light of the "robust" momentum in the pub owner's sales and given the prospect that cost pressures would abate.
FTSE 250
20,450.69
17:14 20/12/24
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FTSE 350
4,463.29
17:14 20/12/24
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FTSE All-Share
4,421.11
17:04 20/12/24
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Mitchells & Butlers
246.50p
16:49 20/12/24
0.41%
1.00p
Travel & Leisure
9,231.47
17:14 20/12/24
0.69%
63.21
Their estimates for its earnings before interest, taxes, depreciation and amortisation in 2023 and 2024 rose by 2% and 13%, respectively.
Earnings per share for those two years were seen coming in 10% and 55% higher.
All told, they boosted their target price from 170.0p to 270.0p and upgraded their recommendation from 'hold' to 'buy'.
They also highlighted the company's well-invested and well-located 80% freehold food-oriented pub estate.
All of those factors, they said, should M&B win "material" market share even as other smaller operators struggled.