Bernstein downgraded InterContinental (IHG) to Underperform from Market Perform with a 7,350 GBp price target. After a strong start to the year for lodging stocks, they are now offering a negative real yield, which is normally a sign the stocks will de-rate, the analyst tells investors in a research note. The firm agrees with InterContinental’s recently set out long-term 13-15% earnings algorithm, but disagree that the stock should trade in line with Hilton (HLT) and Marriot (MAR) given its RevPAR outlook and lesser contribution from credit card revenues.
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Read More on IHG:
- InterContinental price target raised to 7,400 GBp from 6,000 GBp at Berenberg
- InterContinental price target raised to 6,100 GBp from 5,400 GBp at JPMorgan
- InterContinental price target raised to 6,980 GBp at Deutsche Bank
- InterContinental price target raised to 8,400 GBp from 6,600 GBp at Barclays
- InterContinental price target raised to 7,700 GBp at Morgan Stanley
