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Highlights

  • Berenberg has lowered the IHG price target to GBP 92 from GBP 97, maintaining a hold rating
  • Shares down 15% year-to-date amid US and China market pressures

Berenberg analysts revised their outlook on InterContinental Hotels Group (LN: IHG) on Wednesday, highlighting ongoing challenges in key markets such as the United States and China. The firm lowered its price target to GBP 92.00 from GBP 97.00 but maintained a Hold rating on the stock.

Year-to-date, IHG shares have declined approximately 15%, reflecting the volatility faced in 2025 amid uncertainties in the global hotel market. Despite this pressure, the company reported a 6.47% increase in revenue over the past twelve months. It was supported by stable first-quarter results that suggest some resilience in its operations.

Berenberg’s downward revision centers mainly on a reduced revenue per available room (RevPAR) forecast for the Americas division, with estimates lowered by a low-single-digit percentage. This adjustment reflects the firm’s cautious view of near-term performance in one of IHG’s most significant regions.

Currently, the company trades at a price-to-earnings (P/E) ratio of 30.26, indicating investor expectations of continued earnings growth, though the valuation appears relatively high given the revised outlook. The Hold rating suggests Berenberg expects the stock to trade sideways under current market conditions.