Panmure Liberum repeated a Buy on Mitchells & Butlers (LSE:MAB), setting a 390p target after the group reported resilient interims.
Analyst Anna Barnfather highlighted the pub group's trading resilience, with like‑for‑like sales +3.3% and adjusted operating profit held at £181m, despite material inflationary pressure.
Moreover, the broker highlighted improved cost guidance with gross headwinds now c.£120m for FY26 and expected to normalise to c.£95m for FY27.
In the note, Barnfather flagged softer LFL momentum through the half (Q1 +4.5% to Q2 +1.8% and c.+1.1% in the last three weeks), prompting Panmure to lower its FY26 LFL assumption to +2.5% from +3.5% but to offset this with higher full‑year capex of c.£230m (122 projects completed in H1), remodel returns above 30% and energy now fully secured for FY26.
Panmure's investment case now looks for signs of FY27 margin recovery and sustained cash generation.
