IHG Shares: This Analyst Remains Bullish, Here’s Why

Jefferies raised its price target on InterContinental Hotels Group (LON: IHG) (NYSE: IHG) to $195 from $160 on Friday, retaining a Buy rating, highlighting strengthening revenue-per-available-room momentum and growing confidence in the hotel giant’s long-term growth trajectory.

The upgrade in target comes as IHG shares have surged 22.5% year to date and 51.4% over the past 12 months, reflecting broad investor enthusiasm for the asset-light hospitality model.

Jefferies analyst Simon Lechipre said RevPAR momentum is trending ahead of expectations, supported by U.S. strength and improving offering scores from recent brand upgrades. The bank added that it is increasingly confident in a sustainable acceleration in net unit growth, underpinned by IHG’s recent brand strategy development.

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Jefferies is not alone in its bullishness. Goldman Sachs raised its price target to $188 from $165 earlier this month, also maintaining a Buy rating, pointing to a sustained acceleration in net unit growth as a catalyst for further re-rating and a narrowing of the valuation discount to U.S. peers Hilton and Marriott. Goldman highlighted improved momentum across signings, the pipeline under construction, conversion mix and lower removal rates versus recent history.

Bernstein took a more cautious view in May, lifting its target to $154 from $141 but retaining a Market Perform rating, with analyst Richard Clarke expressing a preference for Hyatt and Marriott given the K-shaped U.S. economic backdrop.

Overall analyst sentiment remains mixed, with TradingView data showing eight of 18 analysts at Buy, six at Hold and four at Sell, suggesting the stock’s strong run has not yet generated a consensus around further upside.