Peel Hunt upgrades InterContinental Hotels to 'hold'

Analysts at Peel Hunt upgraded their rating on Holiday Inn owner InterContinental Hotels Group from 'reduce' to 'hold' on Thursday after upping their full-year forecasts for the company.

Peel Hunt, which also reiterated its 4,600.0p target price on the stock, increased its forecasts for full-year 2021 underlying earnings by 4% to $564.0m, while pre-tax profit and earnings per share estimates were both hiked 8% to $316.0m and $1.11 per share, respectively.

The investment bank stated that in InterContinental's first-half analyst presentation last week, management highlighted the company's potential for future growth.

"Early next year, after removing more underperforming hotels, we expect net system growth to return and for this to have a positive impact on sentiment," said Peel Hunt.

"Taking account of this, plus the forecast upgrade we have made today and recent share price weakness, leads us to upgrade to 'hold'."