London’s FTSE 100 was down 0.6% at 8,257.76 in afternoon trade on Wednesday.
InterContinental Hotels was the top gainer after Goldman Sachs upgraded the shares to ‘buy’ from ‘neutral’ as it reshuffled its European-listed hotel ratings.
The bank said IHG’s enhanced long-term earnings per share growth algorithm, improved enterprise platform and optionality on ancillary revenue streams merits a narrower valuation discount to key US peers.
“We think the stock’s de-rating over the last six months creates an attractive entry-point into a high quality, asset-light hotel franchise platform offering more than 15% EPS CAGR (2023-28E) a 7% shareholder return per annum and one of the highest returns on invested capital in our leisure coverage (circa 46% in 2025E),” GS said.
Reckitt Benckiser was also higher following a report that it has started early discussions with some of the potential suitors for its homecare assets, which could fetch more…
