InterContinental share price up after upbeat MainFirst comments
Shares in InterContinental Hotels Group (LON:IHG) have climbed higher in today’s session as MainFirst kicked off coverage of the Holiday Inn and Crowne Plaza owner with an ‘outperform’ rating. Proactive Investors quoted the broker as commenting that the blue-chip company “offers a pure asset-light model with a proven earnings and cash resilience through the cycle”.
As of 14:52 BST, the InterContinental share price had added 1.01 percent to 4,888.00p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.46 percent higher at 7,470.86 points. The group’s shares have added more than 15 percent to their value over the past year, as compared with about a 3.4-percent gain in the Footsie.
MainFirst upbeat on InterContinental
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MaiFirst started coverage of the Crowne Plaza and the Holiday Inn owner with an ‘outperform’ rating today, and a price target of 5,600p. Proactive Investors quoted the broker as commenting in a note that the InterContinental share price was up 14 percent year-to-date but trading at an ‘attractive’ 18x price-to-earnings based on full-year 2020 estimates, versus French rival Accor at 19.5 percent, while offering a 10-percent three-year earnings per share compound annual growth rate.
“This, coupled with its best-in class attributes, are key components vis-à-vis industry threats, ultimately offering a less risky play within our coverage,” the analysts continued, adding that the next catalysts for the shares would be the group’s first-quarter trading update on May 3, which they expect to show a steady quarter-on-quarter revenue per available room trend and positive net system size growth momentum.
Other analysts on Holiday Inn owner
Goldman Sachs, which rates the FTSE 100 company as a ‘neutral,’ lowered its price target on the shares from 5,100p to 5,368.42p yesterday. According to MarketBeat, the blue-chip group currently has a consensus ‘hold’ rating and an average valuation of 4,885p.