LONDON (ShareCast) - (Sharecast News) - Peel Hunt slashed its price target on InterContinental Hotels on Wednesday to 9,500p from 10,670p, citing weaker US travel data.
The broker noted that IHG shares are down 17% year-to-date, while Marriott is down 2% and Hilton is up 8%.

"There is scope for IHG to catch up with peers," it said. "Despite lumpy US domestic travel data, we believe IHG can achieve 13% YoY operating profit growth in FY25E."

"In algorithm we trust", said Peel Hunt, noting that IHG only needs modest like-for-like growth to deliver its target 12-15% earnings per share compound annual growth rate and continue to return surplus capital.

"The S&P 500 and the share prices of IHG's competitors imply confidence in IHG's US prospects," it said.

"We believe that IHG's share price will catch up with the positive reality. We reiterate our 'add' recommendation, but lower our target price."

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