InterContinental Hotels: Oddo BHF raises target price

(CercleFinance.com) - Oddo BHF maintains its 'outperform' rating on InterContinental Hotels, with a target price raised from 6,750 pence to 8,700 pence, saying that it is positive about the company's prospects for 2024, following good 2023 results and a new share buyback program.


The broker highlights the British hotel group's relatively resilient exposure, solid financial position, as well as its know-how and good track record in terms of hotel development.

The market valuation suggests an EV/EBITDA 2024 multiple of 16.4x, i.e. a 10% discount to US asset light comparables (Hilton and Marriott), a level we consider unjustified in the current context, and an FCF yield of 4%, it adds.


Copyright (c) 2024 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.
The information and analyses published by Cercle Finance are intended solely as a decision-making aid for investors. Cercle Finance cannot be held responsible, directly or indirectly, for the use of information and analyses by readers. Uninformed investors are advised to consult a professional advisor before investing. This information does not constitute an invitation to sell or a solicitation to buy.