InterContinental Hotels Group's consensus price target was modestly raised to £90.36, as analysts cited resilient Q2 performance, robust growth in signings, and increased loyalty contribution, partly offset by FX headwinds and ongoing U.S. RevPAR weakness.
Analyst Commentary
- Resilient operating model demonstrated in Q2 results supports modest target increases, despite limited share upside.
- Management confidence highlighted by strong growth in signings and increased loyalty program contribution.
- Large addressable market identified for property conversions from independents and other brands.
- Slight downward adjustment due to foreign exchange movements.
- Ongoing U.S. RevPAR pressures and lack of near-term catalysts continue to weigh on more cautious analyst outlooks.
What's in the News
- Interim dividend increased by 10% to 58.6 cents, totaling approximately $270 million in dividends for 2025.
- Completed $425 million share buyback, repurchasing 3.8 million shares (2.41% of share capital).
- Expanded luxury and lifestyle portfolio in Lima with the opening of InterContinental Real Lima Miraflores and Hotel Indigo Lima Miraflores in partnership with Grupo Poma.
Valuation Changes
Summary of Valuation Changes for InterContinental Hotels Group
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £89.07 to £90.36.
- The Future P/E for InterContinental Hotels Group has significantly fallen from 21.67x to 17.98x.
- The Net Profit Margin for InterContinental Hotels Group has risen slightly from 33.63% to 34.60%.
Disclaimer
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