Mitchells & Butlers downgraded by Beaufort

Beaufort Securities has downgraded its recommendation on Mitchells & Butlers (LON:MAB) to 'hold' from 'buy' following yesterday's full year results announcement, stating that it is now awaiting a more confident scenario.

The broker added: "M&B will see further downward pressure on margins in the current financial year".

Meanwhile, Canaccord Genuity and JP Morgan Cazenove reaffirmed 'buy' and 'neutral' ratings on the restaurant and pub operator, respectively.

Leaving its price target unchanged at 350 pence a share, Canaccord commented: "There is a recovering sales performance gaining traction at M&B but its fragile and the business is facing significant cost headwinds.

"It's going to be a long-haul but the business is underpinned by an excellent freehold estate."

At 3:00pm: (LON:MAB) Mitchells Butlers PLC share price was -6.65p at 257.55p