Shares in InterContinental Hotels Group (LON:IHG) have advanced in today’s session, ahead of the company’s full-year results tomorrow when the Holiday Inn and Crowne Plaza owner is expected to report a rise in revenue and earnings. The results will come after the blue-chip group recently revealed that it was expecting the new US Tax Cuts and Job Acts Bill to reduce its effective tax rate by mid to high single digit percentage points from January 1.
As of 14:40 GMT, InterContinental’s share price had climbed 0.28 percent to 4,716.00p, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped into the red and currently standing 0.33 percent lower at 7,270.59 points. The group’s shares have added more than a fifth to their value over the past year, as compared with a near 0.3-percent dip in the Footsie.
InterContinental is scheduled to update investors on its full-year performance tomorrow and Proactive Investors reports that the group is expected to unveil that it revenue climbed by 5.6 percent to $1.81 billion driven primarily by net system size expansion and growth in revenue per available room.
The Holiday Inn and Crowne Plaza’s earnings before interest and taxes meanwhile are forecast to come in seven percent higher at $757 million, in addition to an 18-percent rise in the group’s earnings per share to $2.37.
Analysts on InterContinental
Credit Suisse reiterated its ‘outperform’ rating on InterContinental last week, valuing the shares at 5,800p, while HSBC, which sees the Holiday Inn and Crowne Plaza owner as a ‘hold,’ boosted its price target on the stock from 3,800p to 4,600p. According to MarketBeat, the blue-chip company currently has a consensus ‘hold’ rating and an average valuation of 4,305.77p.