Intercontinental Hotels Group PLC (LSE:IHG) (IHG) releases its third-quarter update in just over two weeks (20 October) and US bank Jefferies expects no sign of a consumer slowdown in its numbers.
Revenue per room (revpar) at the hotel owner is expected to be up 10.2% year-on-year led by strong pricing (plus 8%), while Jefferies is also pencilling another US$250 million buyback with the possibility of a further US$500 million in 2024.
That alone would drive 2-4% EPS upgrades in future but on a no-recession scenario, proven execution if times do get tough, scope for further buybacks and an undemanding valuation. Jefferies rates the shares as a 'buy'.
The US bank has a price target of £64.