Muneeba Kayani, an analyst from Bank of America Securities, reiterated the Buy rating on InterContinental Hotels. The associated price target is $156.00.
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Muneeba Kayani has given his Buy rating due to a combination of factors that, in his view, support upside in InterContinental Hotels’ shares. He notes that the stock has lagged other names this year and is currently in a “buyback vacuum” following the trading-currency change, which has contributed to a derating. However, with management expected to announce a new share repurchase program alongside full-year results in mid‑February, he anticipates renewed buyback activity will provide a meaningful catalyst for a rebound in the share price. The current price also sits at a discount to his target of $156, reinforcing a favorable risk‑reward profile.
Muneeba Kayani’s rating is based on the view that underlying industry fundamentals remain solid, particularly through improving travel demand and firm RevPAR trends. He highlights that revenue per available room strengthened through the fourth quarter and is forecast to grow modestly in 2025, with a further pickup expected in 2026 across key regions such as the US, Europe and China. Meanwhile, he expects the Middle East, Africa and the rest of Asia-Pacific to maintain mid‑single- to high‑single-digit growth. Although early‑year trading shows some softness due to calendar effects and regional noise, the recent improvement in US performance points to a healthy start to the year, supporting his constructive stance on earnings and the Buy recommendation.
In another report released on January 19, Berenberg Bank also upgraded the stock to a Buy with a $157.00 price target.