08:12 AM EDT, 08/12/2026 (MT Newswires) -- BofA Global Research revised its estimates for InterContinental Hotels Group (IHG.L) as it took note of the London-listed hospitality company's "solid" second-quarter results amid a tough reporting season for the hotels sector. "IHG's 2Q26 [revenue per available room] came in at +3.5% yoy, better than BofAe of 3.1% and on par with US peers despite bigger ME exposure. [Net unit growth] was at 5% again after crossing the 5% mark in Q1, with signings +8% yoy indicating strong underlying brand momentum," analysts said Tuesday. "With the World Cup continuing to be a tailwind into 3Q and relatively easy comps in 4Q (US gov't shutdown last year), we upgrade FY RevPAR estimate from 3% to 3.3%, though FY26E EBIT is largely unchanged at$1,398m after accounting for the $5m fire expense at a leased hotel." In terms of EPS, the research firm raised its forecasts for 2026 and 2028, while the estimate for 2027 was bumped down. "We think the valuation gap should continue to narrow as NUG accelerates and outsized earnings growth is delivered through better margin expansion and catch-up on non-RevPAR fees," BofA noted, retaining the stock's buy rating and price objective of $188.

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