InterContinental Hotels Group's (LON: IHG) London-listed shares are up slightly in 2022, hovering around the 4,950p mark, but one analyst believes the stock “has been left behind.”
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On Friday, Peel Hunt upgraded IHG to Buy from Hold, raising the price target on the stock to 5,750p from 4,600p per share.
Analyst Ivor Jones said in a research note to clients that InterContinental's share price “has been left behind in an undervalued UK market and domestically-focused subsector.” In addition, the analyst stated that he sees “solid dividend growth” for IHG.
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The upgrade and comments from the Peel Hunt analyst resulted in a more than 4% rise in IHG's share price.
Travel stocks were, of course, significantly impacted during the pandemic, while 2022 hasn't been too much kinder with various headwinds, such as soaring prices hitting consumer wallets. Even so, demand remains robust, according to recent updates from travel-related firms.
Furthermore, despite lowering her price target on IHG to 5,500p from 6,000p per share in a recent note, Jefferies analyst Jaina Mistry maintained a Buy rating on the shares after taking over coverage of the name.
The analyst said she is a buyer of IHG's exposure to the economic “reopening” and “more resilient” US consumer, while she also likes the company's “pricing sophistication, low inflation risk and robust balance sheet.”
Overall, out of nine analysts, six have a Buy rating on IHG, with two at Hold and One at Sell, according to TipRanks. The average price target is 5,552.22p, representing a potential 12.1% upside.
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