Analyst Muneeba Kayani from Bank of America Securities reiterated a Buy rating on InterContinental Hotels and decreased the price target to p10,200.00 from p10,300.00.
TipRanks Cyber Monday Sale
- Claim 60% off TipRanks Premium for data-backed insights and research tools you need to invest with confidence.
- Subscribe to TipRanks' Smart Investor Picks and see our data in action through our high-performing model portfolio - now also 60% off
Muneeba Kayani has given his Buy rating due to a combination of factors that highlight InterContinental Hotels Group’s strong market position and growth potential. The company is experiencing steady demand trends in its key markets, particularly in the US where supportive economic fundamentals such as low unemployment and improving inflation are driving real wage growth. Additionally, the potential stabilization of RevPAR in China is seen as a positive indicator for future performance.
Furthermore, InterContinental Hotels is confident in its ability to continue improving its net system growth, supported by a robust pipeline and access to financing for new builds. The company’s focus on fee-accretive unit growth and its superior technology platform, which is set to be enhanced with AI, are expected to create added value for guests and hotel owners. With a high return on invested capital and projected earnings growth, the company is well-positioned for margin expansion, making it an attractive investment opportunity.