InterContinental Earnings: Profitability and Its Brand Prowess Shining Bright; Shares a Bit Rich

We believe the 8% move higher in InterContinental's shares during Feb. 20 trading was due to a stronger profit outlook and strategic priority update that supports an enduring brand intangible asset, source of its wide moat rating. We plan to lift our $84 and GBX 6,600 fair value estimates for the U.S.- and U.K.-listed shares, respectively, by a high-single-digit percentage for higher profit expectations. We see shares as slightly overvalued.