Broker tips: IHG, Experian, Kingfisher

13th Jul 2012 11:18

Shares of InterContinental Hotels (IHG) were taken down a peg on Thursday after US peer Marriott scaled back its international revenue per available room (RevPAR) guidance; nevertheless, Investec has stayed positive on the British hotels firm, keeps its 'buy' rating and 1,700p target price."Sceptics of the global hotels recovery had a field day following the Marriott Q2 results on 11 July. In our view, they are wrong. Marriott is forecasting group RevPAR growth of 6-8% in 2012. This alone places our FY12E estimates for IHG (47% exposed to the US) under severe upside pressure," the broker said.Nomura has reiterated its 'buy' rating and 1,035p target price for Experian after first-quarter results from the financial data company came in slightly ahead of forecasts.The broker says that shares are trading at around 18 times current-year earnings. "We believe the premium valuation is justified by superior growth vs. the rest of the sector."In a preview of Kingfisher's second-quarter update next week, Jefferies has retained its 'buy' recommendation and 360p target price for the do-it-yourself retailer.The broker is expecting a "solid' quarterly performance even though the UK saw triple the historical average number of rainy days and poor weather was also experienced in France.Jefferies said: "The group's resilience in the face of adversity highlights a continued ability to offset a challenging backdrop. With the UK picture likely to improve from here (note Green Deal launch in October) and plenty of self-help still available, the stock remains a 'buy'."BC