Deutsche Bank raises IWG stock price target to GBP2.75 on flexible work trend

Published 08/08/2025, 12:16
Deutsche Bank raises IWG stock price target to GBP2.75 on flexible work trend

Investing.com - Deutsche Bank (ETR:DBKGn) raised its price target on IWG Plc (LON:IWG) to GBP2.75 from GBP2.50 on Friday, while maintaining a Buy rating on the flexible workspace provider.

The bank cited IWG’s position as "a beneficiary of a structural shift to a more flexible and cost effective way of working for large companies and SMEs," noting the company is the global leader with approximately 4,000 locations.

Deutsche Bank highlighted IWG’s capital-light strategy, which it believes "could deliver faster growth at a lower cost and lower risk," prompting the analysts to update their sum-of-the-parts valuation.

The bank noted that IWG’s Managed & Franchised business is gaining momentum, with a pipeline of 192,000 rooms relative to a base of 202,000 rooms at the end of Q1, suggesting the firm’s deployment forecasts "could be conservative."

Deutsche Bank projects that EBITDA from the Managed & Franchised segment could reach approximately $70 million, representing about 15% of Group EBITDA in fiscal year 2027, with margin improvements expected as the division builds scale and benefits from operating synergies.

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