Mitchells & Butlers PLC (LSE:MAB)'s third-quarter trading statement on Thursday (25 July) offers the potential for more profit upgrades, suggests Peel Hunt.
Having already upgraded its profit forecast for this year by 9% (£15 million) after the half-year numbers, it might do so again if sales can be around the 3-4% growth mark.
Weather will have an impact but England’s Euro 2024 run should have helped.
Shares have risen 69% over the past year, but there is plenty of room for further EBITDA growth and debt reduction, as well as a potential re-rating, says the broker.
Buy with a 340p target is the view.