InterContinental reinstated with a Buy at BofA

BofA analyst Muneeba Kayani reinstated coverage of InterContinental with a Buy rating and 7,200 GBp price target. The analyst says the stock’s multiple discount to IHG‘s U.S. peers has expanded to 14%, wider than historically, which is unjustified given its high returns and cash return potential. InterContinental’s system growth concerns are overblown and strong RevPAR should be sustainable amid resilient travel demand, the analyst tells investors in a research note.