InterContinental Hotels, the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst Muneeba Kayani from Bank of America Securities reiterated a Buy rating on the stock and has a p11,700.00 price target.
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Muneeba Kayani has given her Buy rating due to a combination of factors that highlight the potential growth and value of InterContinental Hotels Group (IHG). She anticipates a significant improvement in the company’s US Revenue Per Available Room (RevPAR) starting in the second quarter of 2026, driven by favorable year-over-year comparisons and the positive impact of major events like the FIFA World Cup and America250. Additionally, she expects the Net Unit Growth (NUG) to accelerate, which is a positive indicator of the company’s expansion and market presence.
Furthermore, Kayani points out that IHG’s business model offers more monetization opportunities beyond RevPAR, particularly through credit card licensing fees and branded residence fees, which are expected to grow substantially. The company’s valuation is considered attractive, as it trades at a discount compared to its US peers, despite having a Like-for-Like RevPAR growth premium and increasing NUG. With an estimated $1.2 billion in dividends and buybacks in 2026, equivalent to about 6% of the current market cap, Kayani sees a strong potential for shareholder returns, reinforcing her Buy recommendation.
In another report released on December 11, Jefferies also upgraded the stock to a Buy with a p11,400.00 price target.