In a report released today, Muneeba Kayani from Bank of America Securities reiterated a Buy rating on InterContinental Hotels (IHG – Research Report), with a price target of p10,300.00.
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Muneeba Kayani’s rating is based on several positive indicators for InterContinental Hotels Group (IHG). The company is experiencing stable demand trends across various regions, with the US market remaining flat and EMEAA showing mid-single-digit growth. Additionally, IHG anticipates improvement in China throughout the year. Despite some uncertainties in the US market, the company’s pipeline growth is robust, with progress in brand expansion and new signings.
Furthermore, IHG is poised for fee margin expansion due to strategic initiatives such as a credit card agreement and revenue from loyalty points. The company is also in a strong position to increase share buybacks as its operational performance improves. Although there are some adjustments in regional revenue per available room (RevPAR) estimates, the overall financial outlook remains positive, supporting the Buy rating.