Oddo BHF maintains its 'outperform' rating on InterContinental Hotels, with a price target raised from 6,750 to 8,700 pence, saying it is positive about the company's prospects for 2024, following good 2023 results and a new share buyback program.

The research house highlights the British hotel group's relatively resilient exposure, solid financial position, as well as its know-how and good track record in terms of hotel development.

The market valuation suggests an EV/EBITDA 2024 multiple of 16.4 times, i.e. a 10% discount to US asset light comparables (Hilton and Marriott), a level we consider unjustified in the current context, and an FCF yield of 4%", it adds.

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