LONDON (SHARECAST) - Hotel chain operator InterContinental Hotels Group (IHG) has been oversold, according to Prime Markets, which has reiterated its buy recommendation on the stock.
“[IHG] is currently a victim of the global stocks sell-off, but in our view this should not detract from a solid 6 months of results nor the currently favourable trading environment,” said the broker’s head of dealing, Richard Curr.
Prime Markets believes that with the shares hitting a year low (from July 2010) at 962p - and the relative strength index falling below 20 - the stock has been oversold and should return to the November 2010 low of 1,085p in the next six to eight weeks.
UBS upgraded property group British Land from neutral to buy on Monday, saying that the firm’s strategy becomes more attractive in a “low growth and risk averse environment”.
“The group’s income stream is defensive with relatively low expiries and voids (average lease lengths of 11 years and vacancy 2.7%). We estimate on completion of the development programme the earnings yield will be greater than 6% (based on today’s rents).”
“Although we make no change to our price target [of 610p], based on the current valuation and upside potential we upgrade our rating to buy.”
Final results from agricultural supplier NWF Group beat expectations, but Peel Hunt downgrades its rating on the stock, saying that the new revised target price reflects current market valuations.
Despite being “increasingly optimistic of outperformance”, the broker notes that the shares have had a strong run since June (+18%) and are now trading close to its revised target price of 130p (140p previously).
LONDON (SHARECAST) - Hotel chain operator InterContinental Hotels Group (IHG) has been oversold, according to Prime Markets, which has reiterated its buy recommendation on the stock.
