Broker snap: InterContinental Hotels downgraded

11th Dec 2009 12:44

InterContinental Hotels has shrugged off a downgrade to 'hold' from 'buy' at Panmure Gordon, which thinks the shares are fully valued.The shares are trading very close to the broker's 910p price target following a strong performance in 2009, while Panmure adds that further consensus forecast upgrades are unlikely.It prefers Whitbread, with a 'buy' stance and 1,470p target. The Costa Coffee owner trades on a 30% discount to InterContinental, has potential catalysts in Q3 IMS on Monday and an investor day on 28 January, and generates all of its hotel profits from the UK, which appears likely to recover quicker than other developed markets.