Berenberg downgrades IHG to 'hold', lowers target price

Analysts at Berenberg downgraded their recommendation for shares of hotel operator IHG from 'buy' to 'hold'.

In a research note sent to clients, they said that they remained bullish on the long-term structural growth drivers of the hotel industry and still thought that IHG was "well placed" to benefit from them.

However, that was "broadly" already in the price in their judgement, while financing challenges and the geopolitical backdrop posed near-term risks.

Hence, there judged that there was little scope for a re-rating.

Furthermore, their estimates were in line with those of the market, so the shares looked fairly valued.

Their target price for the shares was lowered from 6,500.0p to 6,000.0p.