By Michele Maatouk
Date: Tuesday 16 Apr 2019
LONDON (ShareCast) - (Sharecast News) - Shares in InterContinental Hotels got a boost on Tuesday as MainFirst initiated coverage of the stock at 'outperform' with a 5,600p price target, arguing that it's a safe haven with opportunities for growth acceleration.
MainFirst said that its non-consensus recommendation - 30% of ratings for IHG are 'buy' - relies on the strong fee-based, cash-generative, macro-resilient business model offered by the company.
"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," it said.
It noted that the shares are up 14% year-to-date but trading at an "attractive" 18x FY20E price-to-earnings, versus French rival Accor at 19.5%, while offering a 10% three-year earnings per share compound annual growth rate.
"IHG offers a pure asset-light model with a proven earnings and cash resilience through the cycle. Its best-in-class features, including its portfolio of strong brands, and a leading commercial/technological platform, bring competitive advantages and constitute solid attributes to face industry-specific threats.
"Strategic initiatives recently unveiled pave the way for a progressive acceleration in the development of the portfolio."
MainFirst said the next catalyst for the shares will be IHG's first-quarter trading update on 3 May, which it expects to show a steady quarter-on-quarter revenue per available room trend and positive net system size growth momentum.
At 0940 BST, the shares were up 1.2% at 4,895.50p.
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Currency | Euro |
Share Price | 38.74 |
Change Today | -0.63 |
% Change | -1.61 % |
52 Week High | 43.42 |
52 Week Low | 29.52 |
Volume | 301,361 |
Shares Issued | 428.63m |
Market Cap | 16,604m |
Beta | 1.05 |
Strong Buy | 9 |
Buy | 7 |
Neutral | 1 |
Sell | 0 |
Strong Sell | 1 |
Total | 18 |
Time | Volume / Share Price |
14:21 | 3 @ 38.73 |
14:21 | 6 @ 38.73 |
14:20 | 70 @ 38.73 |
14:20 | 60 @ 38.73 |
14:20 | 111 @ 38.73 |
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