InterContinental Hotels Group PLC shares climbed 3.0% on Wednesday, reaching 160.6 GBP, after UBS upgraded the stock to Buy from Neutral and raised its price target to 188 GBP from 157.65 GBP.
The upgrade follows IHG’s first-half performance, which reported a 13% increase in adjusted earnings per share and global revenue per available room (RevPAR) growth of 4.1%. UBS also revised its 2026 and 2027 EPS estimates upward by approximately 4%, while projecting 3.5% RevPAR growth and 5.0% net unit growth for the full year.
IHG’s valuation metrics improved as its enterprise value to EBITDA multiple compressed to 23% from 43% in 2025, narrowing its discount to rival Hilton to about 3%. The stock traded near its 52-week high of 175.7 GBP, set earlier in the year.
The broader UK market lagged, with the FTSE 100 down roughly 0.3%, while Brent crude oil exceeded 95 USD per barrel and 10-year UK gilt yields hit an 18-year high. IHG also continued its share buyback program, repurchasing 86,715 ordinary shares via Goldman Sachs International on September 1 for cancellation.
