Jefferies analyst Jaina Mistry has maintained their neutral stance on IHG stock, giving a Hold rating on April 22.
Jaina Mistry’s rating is based on a combination of factors that reflect the current performance and future outlook of InterContinental Hotels. The company’s recent financial results showed a slight outperformance in revenue per available room (RevPAR) compared to consensus expectations, which was consistent with industry trends and peer performance. Despite this positive outcome, the company’s valuation remains high, trading at a premium compared to its peers, which suggests limited upside potential in the near term.
Furthermore, while the company has shown confidence in meeting profit expectations, the growth prospects in key markets like the Americas appear flat, which tempers enthusiasm for a more aggressive rating. The company’s long-term growth strategy is commendable and comparable to industry leaders, but the current full valuation and market conditions warrant a more cautious stance. Thus, Jaina Mistry has opted for a Hold rating, indicating a balanced view of the company’s strengths and the challenges it faces.
In another report released on April 22, Bernstein also maintained a Hold rating on the stock with a p9,000.00 price target.
Based on the recent corporate insider activity of 28 insiders, corporate insider sentiment is negative on the stock. This means that over the past quarter there has been an increase of insiders selling their shares of IHG in relation to earlier this year.