As pub operators start to enjoy the trading benefits of some warmer summer weather, analysts have become more bullish on a sector where valuations remain firmly below long-term averages.
Analysts at investment bank HSBC said in a research note that the sector had performed well beyond expectations this year.
"We had grown increasingly nervous on the consumer outlook and the risk of earnings downgrades, but these have not shown through… volumes are recovering too, suggesting that elasticity of demand is not yet an issue,” the analysts said, adding that the “the sector looks well set to grow profits and further earnings upgrades could occur”.