In a report released today, Jaina Mistry from Jefferies maintained a Hold rating on InterContinental Hotels (IHG – Research Report), with a price target of £95.00.
Discover the Best Stocks and Maximize Your Portfolio:
- See what stocks are receiving strong buy ratings from top-rated analysts.
- Filter, analyze, and streamline your search for investment opportunities with TipRanks’ Stock Screener.
Jaina Mistry’s rating is based on a combination of factors influencing InterContinental Hotels Group’s financial outlook. The company’s FY24 results aligned with expectations in terms of sales, EBIT, and EPS, but higher interest costs and increased key money expenses have raised concerns. While the acquisition of the Ruby brand is anticipated to contribute positively to NUG in 2025, these cost pressures may dampen profitability in the short term.
Despite being a strong long-term growth contender with a business model comparable to Marriott’s, InterContinental Hotels’ current valuation at 26.3 times the estimated PE for 2025 and a 6% discount to Marriott suggests a full valuation. This valuation level, coupled with the need for more clarity on guidance related to RevPAR and NUG, has led to a Hold rating as the firm waits for more favorable conditions or clearer insights before recommending a more aggressive position.
In another report released on February 4, Bernstein also maintained a Hold rating on the stock with a p9,000.00 price target.