JPMorgan has decided 2026 belongs to hotels, even if 2025 did its best to disguise the fact.
The bank argues that Intercontinental Hotels Group PLC (LSE:IHG) is poised for a turnaround year as US revenue per available room faces easier comparisons from the second quarter and the FIFA World Cup adds a helpful mid-year bump.
A possible recovery in China in 2026 provides the final ingredient. After a flat showing in 2025, UK-listed IHG is suddenly the teacher’s pet.
The tone is less enthusiastic elsewhere. The analysts are “selective” on gaming, catering and voucher stocks, although they insist the second-half de-rating in Flutter Entertainment PLC (LSE:FLTR, NYSE:FLUT) and Entain PLC (LSE:ENT) was overdone now that the UK regulatory backdrop is clearer after the Budget.
They also see the World Cup acting as a catalyst for betting volumes. As a result, Entain is upgraded to 'overweight'.
The other end of the gaming sector gets a more pointed treatment. Evolution and FDJ are both cut to Underweight and placed on negative catalyst watch ahead of their February results.
JPMorgan says its estimates sit about 8% below consensus for 2026 and 2027, which explains the sudden chill.
The bank’s preferred UK names are IHG, Compass and Flutter, while Evolution sits alone as its key Underweight.