InterContinental Hotels Group (IHG) Shares Expected to ‘Drift’ Until Catalyst Next Year

The InterContinental Hotels Group (LON: IHG) share price target was cut to 8,300p from 8,400p by analysts at Jefferies in a recent research note, with the firm saying it expects the company's shares to wander aimlessly until next year.

Jefferies, which maintained a Buy rating on the company's stock, told investors that the company's fiscal half of 2024 results “should paint a reassuring picture of the travel environment.”

Jefferies, while maintaining a Buy rating on the company's stock, believes that the current market uncertainty in both the US and China could cause IHG shares to “drift” until a significant event, such as the arrival of a catalyst regarding credit cards next year. This event could potentially boost the company's shares.

Elsewhere, in a June research note, analysts at JPMorgan cut raised their target for IHG shares to 6,300p from 6,100p but maintained an Underweight or Sell rating on the stock. The investment bank said it was s fine-tuning its estimates for the company as it approaches the end of the second quarter.

IHG shares have performed solidly so far in 2024, up over 17%. Over the past 12 months, they have gained more than 54%, climbing to 8,342p apiece.

In April, the company launched Apple AirPlay in the first phase of hotel rooms. The technology is said to allow guests to stream content privately and securely from their iPhone or iPad to the TV in their guest rooms.

Apple AirPlay is said to be available at more than 60 IHG hotels in North America. IHG is the first to provide AirPlay functionality as part of its in-room entertainment experience.