IHG Shares Top the FTSE 100 After UBS Upgrade to Buy

InterContinental Hotels Group (LSE: IHG) shares have rallied 3.7% on Wednesday, making the hospitality giant the standout performer on the FTSE 100, after analysts at UBS turned bullish on the stock.

UBS analyst Jarrod Castle lifted his rating on the Holiday Inn and Crowne Plaza owner to “Buy” from “Neutral,” alongside a sharply higher price target of $188, up from $157.65 previously — implying meaningful further upside from current levels.

The upgrade centres on IHG’s earnings momentum. Castle told clients he expects the group to continue delivering “strong” growth in the periods ahead, underpinning his more constructive stance on the shares.

Valuation was also central to the call. UBS pointed out that IHG currently trades at only a 3% discount to US rival Hilton, a gap the bank believes should narrow given IHG’s superior earnings growth trajectory. That dynamic, UBS argued, leaves the stock looking attractively priced at present levels, even after recent gains.

The move higher lifted IHG to the top of the FTSE 100 leaderboard in Wednesday’s session, with the stock changing hands at around 160.9p, having opened at 157.5p and touched an intraday high of 161.7p versus Tuesday’s close of 155.9p.

The upgrade adds to a broadly positive narrative around IHG this year, as the group continues to expand its global room count and lean on a fee-based, asset-light business model that supports margins. Investors will now watch for confirmation of that growth story when the company next updates the market on trading.