Broker snap: No near-term catalyst at IHG, say Jefferies

20th Nov 2013 10:44

The share price of hotel operator InterContinental Hotels Group (IHG) was in the red on Wednesday morning after analysts at Jefferies said that the company's Capital Markets Day (CMD) this week failed to offer a short-term share-price catalyst. The broker maintained its 'hold' rating and 1,770p target price.Jefferies pointed out that so far in 2013 IHG has achieved a total shareholder return of 15% against an average of 30% achieved by its global peers Accord, Marriott and Starwood."We attribute this under-performance to: 1) year-to-date rooms growth of 1% versus its peers on 3-4%; and 2) Q3 Americas revenue-per-available room growth of 3.7% against its US biased peers on c5%," it said.The broker wrote that Tuesday's CMD focused on the longer-term potential growth opportunities for the company, "but did not provide an immediate catalyst likely to reverse its recent share price under-performance, in our view".Jefferies said that the company reiterated its strategy to deliver high-quality growth, which includes: growing market share through its large pipeline; improving margins as it moves further towards the Managed & Franchised business; returning further capital to shareholders as assets are sold. However, the broker seemed unimpressed: "None of this was new and no specific numbers or targets were given."The stock was trading 0.48% lower at 1,851p by 10:51.BC