Analyst Jaina Mistry from Jefferies maintained a Hold rating on InterContinental Hotels and increased the price target to £87.00 from £84.00.
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Jaina Mistry’s rating is based on several factors, primarily focusing on the financial performance and market conditions surrounding InterContinental Hotels. The company’s recent interim results highlight the strength of its business model, particularly in terms of cost management, which has led to a notable increase in EBIT despite some challenges in revenue per available room (RevPAR) during the second quarter. This effective cost control has prompted an upward revision in EBIT and EPS forecasts, reflecting a strong projected earnings growth and return on invested capital.
However, despite these positive financial indicators, Mistry notes the absence of immediate catalysts that could drive the stock price higher in the short term. Additionally, the ongoing pressure on RevPAR in the US market contributes to a cautious outlook. With the shares trading at a relatively high price-to-earnings ratio for the fiscal year 2026, the potential for significant upside appears limited, justifying the Hold rating.
In another report released yesterday, Berenberg Bank also maintained a Hold rating on the stock with a p9,200.00 price target.