InterContinental Hotels Group PLC (NYSE:IHG) saw mixed analyst reactions pour in after a largely in-line earnings report that featured 39% annual growth on a like-for-like basis and 92% jump in EPS.
Deutsche Bank lowered its rating on InterContinental Hotels Group (IHG) to Hold after having the hotel stcok slotted at Buy.
The firm warned that the recovery in the price is now factored in.
Analyst Andre Juillard noted IHG posted in-line FY22 results, with Group EBIT at $828M vs. $831M consensus. Tha tally included FX headwinds of $17M and $5M of Iberostar agreement costs.
“In addition, the group announced a fresh $750m of buybacks over FY’23e, following the completion of the earlier $500m announced last year. All included, IHG is set to return c. $1.7bn to shareholders in buybacks and dividends since 2022 or roughly 15% of the market cap in Jan’20.”
Bank of America had a more favorable opinion on IHG with a Buy rating reiterated following what it called solid full-year results. In particular, the firm likes the attractive cash generative model. Robust trading trends and exposure to China reopening theme also seen supporting IHG’s earnings growth.
Also of note, Seeking Alpha authors Discount Fountain and Investigating The Stock Market both have Buy ratings on IHG.
Read the InterContinental Hotels Group earnings call transcript.
InterContinental Hotels is sized up by analysts with travel recovery still peaking
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