Deutsche Bank lowers target price on InterContinental Hotels

InterContinental Hotels Group

9,444.00p

15:45 15/11/24

-0.51%

-48.00p

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.

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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.