On Wednesday, Jefferies analyst James Wheatcroft upgraded InterContinental (LON: IHG) to Buy from Underperform, setting a price target of 5,750p.
The upgrade was part of a research note named “Leisure Outlook 2022: Hotels Now Preferred.”
The analyst told investors that the company is among the beneficiaries in the travel industry due to the pandemic recovery being underway.
Wheatcroft also noted positive trends in UK and US hotel searches, with geolocation data showing the U.S. hotel footfall recovery continuing.
IHG shares initially touched a high of 5,070p on Thursday. Despite a recent dip — where it fell to 4,795p — the stock has managed to regain some of those losses with today's move.
Since a low of 2,161p back in March, IHG shares have made a strong comeback, in line with travel restrictions steadily easing.
There's no doubt that IHG Group, like many hotel groups, has been impacted by COVID-19. However, in the last year, IHG Group has seen an increase in ratings, dragging it out of the slump it was once in.
InterContinental Hotels Group is, as the name suggests, an international hotel company. It first started as a brewery in the UK in 1777 under the name Bass. The IHG brand was born in 2003.
IHG currently has 17 brands, according to its website. These are Six Senses, Regent, InterContinental Hotels & Resorts, Vignette Collection, Kimpton Hotels & Restaurants, Hotel Indigo, Even Hotels, Hualuxe, Crowne Plaza, Voco, Holiday Inn, Holiday Inn Express, Holiday Inn Club Vacations, Avid, Staybridge Suites, Atwell Suites, and Candlewood Suites.
Its shares are listed on the New York Stock Exchange and London Stock Exchange under the ticker symbol IHG.
Travel stocks, including IHG shares, have been severely impacted by the coronavirus pandemic and subsequent travel restrictions. Hotels, airlines, cruises, and car rental companies have all been affected, but could now be a good time to buy travel stocks at a discount? Are IHG shares included on our list of the best travel stocks to buy? Here's what our analyst had to say on the issue…
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Sam is a trader and lead stock market writer at AskTraders. After starting his career in the forex market, Sam now focuses on stocks, specifically consumer staples.