IHG upgraded to “hold” by Deutsche Bank as price target cut to 7,750p

Investing.com -- Deutsche Bank has upgraded its recommendation on InterContinental Hotels Group to "hold" from "sell," while simultaneously revising its target price downward. 

The new target for IHG is 7,750 pence, down from the previous 8,000 pence, reflecting a 3.1% reduction in valuation outlook​.

The adjustment comes amid broader revisions within the tourism and travel sector.

According to Deutsche Bank, the industry has made a strong recovery from the disruptions of the COVID-19 pandemic, with international tourist numbers in 2024 reaching 1.45 billion, just 1% below the pre-pandemic peak of 1.46 billion in 2019. 

Projections for 2025 suggest a new record of 1.6 billion travelers, highlighting the sector’s return to long-term growth patterns. 

Despite the structural resilience and growing demand in global travel, Deutsche Bank’s stance on IHG suggests a more cautious near-term outlook within the current valuation context​.

While the recommendation on IHG has been softened from a negative to a neutral stance, the price cut signals tempered expectations for short-term performance, even as long-term industry fundamentals remain strong.

 

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