Stock market today: S&P 500 drops for fifth day as focus shifts to Powell’s speech
On Thursday, shares of Indian Hotels Company (IH:IN) continued to attract investor attention following the reiteration of a Buy rating and an INR980.00 price target by Jefferies. The firm’s analysts expressed confidence in the company’s ability to thrive despite a global economic downturn and a consumer spending slowdown in India.
Indian Hotels Company, according to Jefferies, is well-positioned to benefit from the ongoing recovery in the Indian hotel industry, with anticipated increases in Average Room Rates (ARRs) and Revenue Per Available Room (RevPAR) from the fiscal year 2025 to 2028. The analysts highlighted the company’s successful track record in meeting past guidance and its strong domestic focus, which accounts for nearly 100% of its EBITDA, as factors reinforcing their positive outlook.
The management’s new targets set until the fiscal year 2030 have also instilled confidence in Jefferies, leading them to maintain their Buy recommendation. The price target of INR980 is based on a 37x multiple of the fiscal year 2027’s estimated enterprise value to EBITDA, reflecting the firm’s view of Indian Hotels Company as a resilient investment within the consumer discretionary space.
Despite recent market corrections that have affected the stock, Jefferies suggests that Indian Hotels Company’s consistent growth potential and a more sustainable business model could justify its current valuations. The company’s focus on the domestic market and the favorable travel tailwinds are seen as key drivers for its future performance.
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