Pub group stock remains an attractive buy

FROM a high of £2.57 in August, Mitchell and Butlers’ share price has underperformed the wider British market by 11% over the past month.

Concerns centred on the possible ejection of the stock from the FTSE 100 at the September quarterly review. This would have triggered selling from index-tracking funds, a fact anticipated by active investors who sold the stock ahead of the review on concerns over the potential for technical weakness.

The concerns have proved unwarranted. Mitchells and Butlers has remained a FTSE 100 constituent. Recent price weakness provides an attractive buying opportunity.