Market's view on InterContinental Hotels
Published on April 2024
- Stock watchers noted a significant increase in the company’s stock price, reaching £74, with speculation on the reasons for the sudden rise.
- The Times reported bid speculation with a consensus price target of £58.68.
- Stock performance has increased approximately 37% since the previous year, despite low interest from certain investor communities.
- A stock watcher mentioned that it seems like a good time to buy as the price rose from under £40 to over £63, nearly a 60% increase.
- Concerns were raised about the potential impact of a recession and inflation on the company’s profits and stock price.
- The company was affected by a broker downgrade due to fears of a deep recession impacting investor sentiment and operational costs.
- Analysts at Berenberg were optimistic, suggesting that the company’s shares would rise due to strong earnings and an earnings upgrade cycle, despite broader economic concerns.
- Concerns about increasing energy costs and their impact on the hotel industry were discussed, with estimates that energy consumption represents between 3% and 6% of hotel operating costs.
- There were discussions around the service sector’s challenges in attracting staff post-COVID-19, with one company offering a £1k bonus for new recruits.