Intercontinental Hotels: Oddo BHF maintains 'reduce' rating
(CercleFinance.com) - An Oddo BHF analyst announced on Wednesday that he is maintaining his Reduce rating on the InterContinental Hotels share, despite interim results being in line with expectations, considering that the share's the downside risk remains high.
Given solid fundamentals, IHG is confident about the group's outlook for the remainder of the year, although in H1 the group benefited from a 6 million dollar one-off windfall, relating to its cost savings plan (savings that have not yet been reinvested), which should be reversed in H2. Note that the comparison basis effect of RevPAR will be more difficult in H2 - particularly in the US - due to an unfavourable calendar effect and the positive impact of hurricanes on demand in H2 17 (a one off), the broker points out.
Oddo BHF says that it is also maintaining its target price of 43 pounds for the share.
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
Given solid fundamentals, IHG is confident about the group's outlook for the remainder of the year, although in H1 the group benefited from a 6 million dollar one-off windfall, relating to its cost savings plan (savings that have not yet been reinvested), which should be reversed in H2. Note that the comparison basis effect of RevPAR will be more difficult in H2 - particularly in the US - due to an unfavourable calendar effect and the positive impact of hurricanes on demand in H2 17 (a one off), the broker points out.
Oddo BHF says that it is also maintaining its target price of 43 pounds for the share.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.