InterContinental Hotels Group (IHG)

Sector:

Tourism and Leisure Services

Index:

FTSE 100

7,596.00p
   
  • Change Today:
    -292.00p
  • 52 Week High: 8,752.00
  • 52 Week Low: 5,210.00
  • Currency: UK Pounds
  • Shares Issued: 162.92m
  • Volume: 169,792
  • Market Cap: £12,376m
  • RiskGrade: 171
  • Beta: 0.02

BofA restarts IHG at 'buy', says valuation discount 'unjustified'

By Alexander Bueso

Date: Tuesday 19 Sep 2023

LONDON (ShareCast) - (Sharecast News) - Analysts at Bank of America restarted coverage of Intercontinental Hotels Group at 'buy' with a 7,200.0p target price, arguing that the shares' valuation discount versus peers was "unjustified".
In a research note, they said the shares' were trading on an enterprise value-to-earnings before interest, taxes, depreciation and amortisation multiple that was at a discount of 14%.

Aside from being wider than had historically been the case, it was unjustified given the company's return on invested capital of over 30%, estimated earnings growth between 2023-27 of 11% and potential for cash returns.

Indeed, they saw scope for IHG to return around 26% of its market value in dividends and share buybacks thanks to its strong cash flow.

They also judged that concerns around its system growth were "overblown", anticipating that it would prove sustainable amid resilient demand for travel.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Intercontintental Hotels Market Data

Currency UK Pounds
Share Price 7,596.00p
Change Today -292.00p
% Change -3.70 %
52 Week High 8,752.00
52 Week Low 5,210.00
Volume 169,792
Shares Issued 162.92m
Market Cap £12,376m
Beta 0.02
RiskGrade 171

Intercontintental Hotels Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
92.09% below the market average92.09% below the market average92.09% below the market average92.09% below the market average92.09% below the market average
92.16% below the sector average92.16% below the sector average92.16% below the sector average92.16% below the sector average92.16% below the sector average
Price Trend
91.24% above the market average91.24% above the market average91.24% above the market average91.24% above the market average91.24% above the market average
96.43% above the sector average96.43% above the sector average96.43% above the sector average96.43% above the sector average96.43% above the sector average
Income
87.44% below the market average87.44% below the market average87.44% below the market average87.44% below the market average87.44% below the market average
100% below the sector average100% below the sector average100% below the sector average100% below the sector average100% below the sector average
Growth
85.50% above the market average85.50% above the market average85.50% above the market average85.50% above the market average85.50% above the market average
5.66% above the sector average5.66% above the sector average5.66% above the sector average5.66% above the sector average5.66% above the sector average

What The Brokers Say

Strong Buy 1
Buy 1
Neutral 8
Sell 5
Strong Sell 3
Total 18
neutral
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Intercontintental Hotels Dividends

  Latest Previous
  Final Interim
Ex-Div 04-Apr-24 31-Aug-23
Paid 14-May-24 05-Oct-23
Amount 104.00¢ 48.30¢

Trades for 03-May-2024

Time Volume / Share Price
12:11 26 @ 7,596.00p
12:11 34 @ 7,594.00p
12:11 38 @ 7,594.00p
12:11 44 @ 7,594.00p
12:11 32 @ 7,594.00p

Intercontintental Hotels Key Personnel

CEO Elie Maalouf
CFO Michael Glover

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