Mitchells & Butlers plc (LON:MAB) Given Consensus Recommendation of "Moderate Buy" by Brokerages

Key Points

• Analysts' consensus is a "Moderate Buy" from six brokerages (four buys, two holds) with an average 1-year target of GBX 511.
• There is wide divergence among analysts' targets — for example, Berenberg rates the stock a buy at GBX 1,150 while JPMorgan is neutral at GBX 340, indicating disagreement on upside potential.
• The stock trades at GBX 251.50 (market cap £1.49bn) with a low valuation (P/E 8.53) but weak short-term liquidity (current ratio 0.47), suggesting it may be cheap but financially tight.

Mitchells & Butlers plc (LON:MAB - Get Free Report) has been assigned an average rating of "Moderate Buy" from the six research firms that are covering the company, Marketbeat Ratings reports. Two equities research analysts have rated the stock with a hold recommendation and four have issued a buy recommendation on the company. The average 1 year target price among brokerages that have issued a report on the stock in the last year is GBX 511.

Several analysts recently commented on the stock. JPMorgan Chase & Co. reaffirmed a "neutral" rating and set a GBX 340 target price on shares of Mitchells & Butlers in a report on Tuesday, December 2nd. Panmure Gordon reissued a "buy" rating and issued a GBX 390 price target on shares of Mitchells & Butlers in a report on Tuesday, December 2nd. Berenberg Bank restated a "buy" rating and set a GBX 1,150 price objective on shares of Mitchells & Butlers in a research report on Monday. Finally, Shore Capital Group restated a "buy" rating on shares of Mitchells & Butlers in a report on Thursday, January 15th.

Mitchells & Butlers Stock Performance

Shares of LON:MAB traded down GBX 3.50 on Monday, hitting GBX 251.50. The company had a trading volume of 1,435,534 shares, compared to its average volume of 1,182,403. The stock has a market cap of £1.49 billion, a price-to-earnings ratio of 8.53, a P/E/G ratio of 2.76 and a beta of 1.34. The stock has a 50 day moving average price of GBX 276.64 and a 200 day moving average price of GBX 263.39. Mitchells & Butlers has a 1-year low of GBX 194.40 and a 1-year high of GBX 308. The company has a current ratio of 0.47, a quick ratio of 0.46 and a debt-to-equity ratio of 53.55.

Mitchells & Butlers Company Profile

Mitchells & Butlers is a leading operator of managed restaurants and pubs in the UK. It listed on the London Stock Exchange in April 2003 and is a member of the FTSE 250. Its restaurants and pubs have some of the highest average sales and profits per site in the industry and it operates the best portfolio of brands in the UK.

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