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Intercontinental Hotels Group PLC (NYSE:IHG) shares have reached an all-time high, touching $131.72, as the company continues to exhibit strong performance in the hospitality sector. With a market capitalization of $20.6 billion and an impressive "GREAT" financial health score according to InvestingPro, the company demonstrates robust fundamentals despite trading above its Fair Value. This new peak represents a significant milestone for IHG, reflecting investor confidence and a robust recovery trajectory in the travel and accommodations industry. Over the past year, IHG has delivered a 37.9% total return, with strong profitability evidenced by a 49.8% gross margin and solid return on assets of 14.6%. The all-time high figure marks a notable achievement for IHG, as it continues to expand its global footprint and enhance its portfolio of properties to meet the evolving demands of travelers worldwide. For deeper insights into IHG's valuation and growth prospects, including 15+ additional ProTips, check out the comprehensive Pro Research Report available on InvestingPro.
In other recent news, InterContinental Hotels Group (IHG) has seen a flurry of activity. Bernstein analysts at SocGen Group recently upgraded the company's stock from Underperform to Market Perform, setting a new price target of GBP90.00. The decision was influenced by a combination of factors, including a recent decline in the stock price and positive adjustments to earnings following a credit card agreement. Analysts also hold a more optimistic view on the Revenue Per Available Room (RevPAR) for the company's key markets, primarily in the U.S. Mainstream and China sectors.
In addition, IHG recently entered into new co-brand credit card agreements in the United States, extending its partnership with JPMorgan Chase (NYSE:JPM) Bank and other financial services partners through 2036. These contracts are expected to bolster IHG's ancillary revenue streams, with projections indicating a doubling of the $39 million in operating profit from 2023 to 2025, and a more than threefold increase by 2028. The company also anticipates receiving upfront cash inflows totaling $137 million pre-tax over the coming months.
Furthermore, IHG reported a 1.5% increase in room revenue for the third quarter, attributed to robust summer demand in Europe. Goldman Sachs upgraded InterContinental's shares from 'Neutral' to 'Buy', projecting a 15.1% compound annual growth rate in earnings for the company from 2023 to 2028. Lastly, IHG announced the approval of a £4 billion Euro Medium Term Note Programme and declared an interim dividend for 2024 at a rate of 40.8 pence per ordinary share.
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