MARKET TALK: M Stanley Raises InterContinental Hotels Target

15th Jun 2010 07:52

0652 GMT [Dow Jones] Morgan Stanley raises InterContinental Hotels Group (IHG.LN) price target to 1320p from 950p. "We remain equalweight InterContinental as the outlook is uncertain, although we want to turn more positive as stronger-than-expected recent hotel demand suggests this should be a 'normal' hotel cycle, and we upgrade our 2010 revenue per available room estimate from -2% to +5%." If this cycle mirrors the last one, RevPAR could grow by over 40% over the next five years, driving 20%+ EPS growth. Shares closed Monday at 1197p. ([email protected]) Contact us in London. +44-20-7842-9464 [email protected] (END) Dow Jones Newswires June 15, 2010 02:52 ET (06:52 GMT)