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.

 

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads.IHG: A Bull or Bear Market Play?

Don't miss out on the next big opportunity! Stay ahead of the curve with ProPicks – 6 model portfolios fueled by AI stock picks with a stellar performance this year..In 2024 alone, ProPicks' AI identified 2 stocks that surged over 150%, 4 additional stocks that leaped over 30%, and 3 more that climbed over 25%. That's an impressive track record.With portfolios tailored for Dow stocks, S&P stocks, Tech Stocks, and Mid Cap stocks, you can explore various wealth-building strategies.So if IHG is on your watchlist, it could be very wise to know whether or not it made the ProPicks lists.

Unlock ProPicks now