Analyst Jaina Mistry from Jefferies maintained a Hold rating on InterContinental Hotels (IHG – Research Report) and decreased the price target to £89.00 from £93.00.
Jaina Mistry’s rating is based on a combination of factors, primarily the macroeconomic uncertainties impacting the hospitality sector. Despite expecting a positive performance in the first quarter, driven by strong market conditions in January and February, there are concerns about the softening RevPAR in the US during March. This decline raises questions about the stability of the US consumer market.
Furthermore, the anticipation of corporate demand hinges on policy clarity, which adds to the uncertainty. Although InterContinental Hotels Group is trading at a discount compared to its peers like Marriott, the softer dollar has led to a slight reduction in the full-year RevPAR forecast and a lowered price target of £89. These elements collectively contribute to the Hold rating, reflecting a cautious stance amid the current market conditions.