Analyst Muneeba Kayani of Bank of America Securities reiterated a Buy rating on InterContinental Hotels (IHG – Research Report), retaining the price target of p11,200.00.
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Muneeba Kayani has given his Buy rating due to a combination of factors, including a robust financial outlook for InterContinental Hotels. The company has announced a $900 million share buyback, which is higher than the previous estimate and contributes to an impressive annual cash return of 6%. This action indicates strong shareholder returns and confidence in the company’s cash flow and future performance.
Additionally, InterContinental Hotels’ strategic acquisition of the Ruby brand is expected to enhance its brand portfolio and contribute positively to its earnings in the coming years. The company’s RevPAR growth exceeded expectations in the fourth quarter, and its future growth projections remain strong with a RevPAR forecast of 3% for 2025. Furthermore, the company’s valuation metrics remain favorable, trading in line with industry peers, which supports the reiterated Buy recommendation.
According to TipRanks, Kayani is an analyst with an average return of -4.0% and a 60.81% success rate.