Analysts Divided as IHG Shares Climb After Earnings

InterContinental Hotels Group (LON: IHG) shares closed 1.1 percent higher Tuesday after delivering full-year results showing double-digit profit and earnings growth, though analyst reactions were mixed following the stock’s recent rally.

The shares are up 4.4 percent year to date and more than 22 percent over six months.

The group reported a 13 percent rise in operating profit from reportable segments and a 16 percent increase in adjusted EPS, supported by record hotel openings and strong fee-margin expansion. Global RevPAR rose 1.5 percent, with EMEAA leading at 4.6 percent.

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Peel Hunt downgraded the stock to Hold from Add, arguing that the recent surge in the share price leaves less room for upside despite solid underlying performance.

The brokerage lifted its target price to $145 from $127 but said the valuation now reflects much of the good news.

In contrast, analysts at Bank of America raised their price target to $160, maintaining a Buy rating. The bank highlighted that InterContinental’s fourth-quarter global RevPAR growth of 1.6 percent outpaced Hilton and narrowly trailed Marriott, despite its lower exposure to higher-end chains.

The strong performance and expanded $950 million buyback program reinforced confidence among bulls, while more cautious analysts pointed to rising net debt, up 20 percent year over year, and ongoing macro uncertainty in key travel markets.

With management emphasizing long-term structural demand drivers and a pipeline equivalent to 33 percent of current system size, investors now face a divided analyst landscape based on momentum and valuation.