Deutsche Bank lowers target price on InterContinental Hotels

Analysts at Deutsche Bank lowered their target price on Holiday Inn operator InterContinental Hotels Group from 5,000.0p to 4,900.0p on Tuesday despite the group's "solid" third-quarter trading update.

Deutsche Bank acknowledged that IHG, which published its latest quarterly report card last Friday, saw revenues per available room had fallen 53.4% year-on-year, a mild improvement on the 75% drop recorded in the second quarter.

The German bank also added that IHG's net portfolio had reached 890,000 rooms, up 2.9% year-on-year, with 11,000 rooms opened during the quarter, 14,000 rooms signed and a global pipeline of 286,000 and highlighted that the group's cost-cutting plan of $150.00m was "on track", with 50% of the savings expected to be sustainable in 2021,

Deutsche, which stood by its 'buy' rating on the stock, also pointed out that the group was finally free-cash-flow positive in August and September, with a refinanced a bond in early October improving the global maturity of its debt and allowing IHG to benefit from its $2.9bn of available liquidities.