IHG Turnaround with JP Morgan Overweight Upgrade

about 1 month ago

Chloe Millay

"IHG. So, this is Intercontinental Hotels. Why are they moving today? They got double upgraded to an overweight rating by JP Morgan. So, analysts noted that it had a really good high earnings visibility and really good cash flow as well. It's not been necessarily a very smooth last few months for IHG. It's been underperforming its peers. It has as many sell ratings on the stock as it does buy ratings. And its main problem has really been its exposure to the U.S. market ... But now JP Morgan analysts said that following that period of underperformance and weakness, the company is now on the right track to perform better."

IHG appears to be in the midst of a turnaround following an extended period of underperformance. The recent double upgrade to an overweight rating by JP Morgan, driven by strong earnings visibility and robust cash flow, positions IHG as a potential buy candidate. This signal suggests investors may want to consider a long position in IHG with a medium-term outlook, as the stock is likely to benefit from improved fundamentals.

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