<strong>MITCHELLS & BUTLER</strong><br />Goldman Sachs downgraded Mitchells & Butlers to “sell” and added the stock to its “conviction list”, saying that the company looks expensive versus its managed pub peers, despite facing identical challenges and having much higher than average leverage. The broker added that it expects sales to lag peers going forward.<br /><br /><strong>MITIE</strong><br />Mitie was upgraded to a “hold” recommendation by KBC Peel Hunt, which welcomed the firm’s acquisition of Dalkia FM. The broker said that, as well as strategic attractions, the synergies help to offset near-term macro issues. It added that the valuation looks stretched, but that the near-term downside is limited.<br /><br /><strong>INCHCAPE</strong><br />Panmure Gordon switched its recommendation from “buy” to “hold” as the shares approach its target price of 29p. The broker thinks that there could potentially be upside to its forecast assumption over time, but said that it is right to exercise caution during the second half as recovery prospects remain fragile in some markets.