IHG Stock Target Raised, but Hold Rating Remains Amid U.S. RevPAR Concerns

Shares of InterContinental Hotels Group (IHG.L) saw a price target increase from Jefferies on Thursday, yet the firm maintained a Hold rating on the stock, reflecting a cautious outlook despite the company's resilient performance.

The revised target of 8,700p, up from 8,400p, is still below the current trading price.

Jefferies believes that while it acknowledges IHG's operating model strength, it suggests limited near-term upside due to persistent pressures in the U.S. market.

The stock's performance is being weighed against a backdrop of mixed analyst sentiment. The firm's Hold rating is influenced by valuation concerns and perceived weaker core growth, particularly within the U.S. market.

Jefferies told investors that despite the company's second-quarter results demonstrating resilience, it sees limited share price upside, with a lack of near-term catalysts on the horizon and continued U.S. RevPAR pressure.

Just over a week ago, analysts at Bank of America lowered their target for IHG to 10,300p from 10,400p. However, the analysts maintained a Buy rating on the stock, noting that CEO Elie Malouf and CFO Michael Glover “sounded confident” at the management meeting post the company's first half results.

BofA sees a “large addressable market for conversions from independents and other brands,” but added that its price target was slightly lowered due to the foreign exchange market.

IHG shares closed down 1.1% in Thursday's session at 8,808p per share. In 2025, the stock has declined more than 11%, while over the last 12 months it has climbed 18.3%.