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
20,508.75
15:45 15/11/24
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FTSE 350
4,453.56
15:45 15/11/24
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FTSE All-Share
4,411.85
15:45 15/11/24
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Mitchells & Butlers
231.50p
15:44 15/11/24
-1.28%
-3.00p
Travel & Leisure
8,607.27
15:45 15/11/24
-0.29%
-25.35
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.