IHG: Deutsche Bank downgrades as valuation factors in outperformance
24/02/2021 10:03
** Deutsche Bank downgrades InterContinental Hotels IHG.L
to "hold" from "buy," following co's FY results and on valuation
** "We believe that current share price levels seem to
factor in outperformance vs. market over the recovery period and
see risk-reward is on balance" - DB
** Co reported an annual loss of $153 mln on Tuesday, but
said a faster recovery in its Holiday Inn Express brand had
helped it outperform in key markets urn:newsml:reuters.com:*:nL4N2KT1JR
** DB says the business remains robust, and poised for
outperforming broader accommodation market through its exposure
to high growth geographies (U.S. and China) and through domestic
demand
** Despite the robust performance, there was not much in
terms of guidance for the year ahead given the uncertainties
still lingering, DB says trimming stock PT to 5,380p from 5,600p
** Of the 24 brokerages covering IHG, avg. rating on stock
is "hold", median PT is 4,300p - Refinitiv Eikon data
** Up to last close, stock up 11.4% YTD
(Reporting By Geetha Panchaksharam)
((geetha.panchaksharam@thomsonreuters.com))