Nomura Securities Maintains a 'Neutral' on InterContinental Hotels (IHG); Qtrly Review
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Price: $160.22 +0.45%
Rating Summary:
5 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
5 Buy, 11 Hold, 2 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Nomura Securities maintains a 'Neutral' on InterContinental Hotels Group (NYSE: IHG), PT 1424p.
Analyst, Tim Barrett, said, "In FY11 IHG converted 6.2% group RevPAR growth into a 16% increase in underlying EBIT. This implies USD 15.3m of EBIT growth per 1ppt of RevPAR, ahead of management’s guidance of USD 13m, with the main source of outperformance being improving franchise royalty rates. IHG has performed strongly and is +19% YTD, +16% rel to the FTSE Allshare. We believe this reflects positive sentiment towards US-centric stocks (IHG has 64% of EBIT from Americas) as well as the expectation that a sale of the InterContinental New York would trigger a capital return. Valuation up with events: FY12E P/E of 16.7x, EV/EBITDA 10.3x. This is an 8% discount to the US peer group vs long-run average of 20%. We would only expect a rerating in the event of accelerating RevPAR."
For an analyst ratings summary and ratings history on InterContinental Hotels Group click here. For more ratings news on InterContinental Hotels Group click here.
Shares of InterContinental Hotels Group closed at $21.50 yesterday.
Analyst, Tim Barrett, said, "In FY11 IHG converted 6.2% group RevPAR growth into a 16% increase in underlying EBIT. This implies USD 15.3m of EBIT growth per 1ppt of RevPAR, ahead of management’s guidance of USD 13m, with the main source of outperformance being improving franchise royalty rates. IHG has performed strongly and is +19% YTD, +16% rel to the FTSE Allshare. We believe this reflects positive sentiment towards US-centric stocks (IHG has 64% of EBIT from Americas) as well as the expectation that a sale of the InterContinental New York would trigger a capital return. Valuation up with events: FY12E P/E of 16.7x, EV/EBITDA 10.3x. This is an 8% discount to the US peer group vs long-run average of 20%. We would only expect a rerating in the event of accelerating RevPAR."
For an analyst ratings summary and ratings history on InterContinental Hotels Group click here. For more ratings news on InterContinental Hotels Group click here.
Shares of InterContinental Hotels Group closed at $21.50 yesterday.
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