The investment case for the pub and restaurant sector is finely balanced, according to a leading analyst. Simon French at Panmure Gordon said that although demand is under pressure and costs are rising, “trading has remained resilient, forecasts appear conservative and valuations look undemanding”. He said: “The market remains concerned that companies are over-leveraged but we believe these are misplaced. After four difficult years, we think the sector is now well placed to sustain meaningful share price outperformance.”

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