EU and US could reach trade deal this weekend - Reuters
On Monday, Jefferies began coverage on IWG Plc (IWG:LN), a leading global provider of flexible office spaces, with a strong endorsement. The firm issued a Buy rating for the company’s shares, alongside setting a price target of GBP2.40.
According to Jefferies, IWG is at a pivotal growth stage for its Managed & Franchise assets, projecting an approximate 40% compound annual growth rate in divisional EBITDA through to fiscal year 2027. The analyst highlighted the company’s shift towards a capital-light model as a significant factor in its future growth trajectory.
IWG’s increasing free cash flow (FCF) is expected to yield over $400 million in potential excess cash that could be returned to shareholders between fiscal years 2025 and 2027. This financial flexibility, combined with the company’s consistent performance, is anticipated to contribute to a potential re-rating of IWG’s share value.
The analyst’s statement underlined the company’s position as the global leader in its sector and the positive outlook for its financial performance: "Improving FCF can drive >$400m of potential excess cash to be returned to shareholders over FY25-27, which alongside consistent delivery can drive a re-rating in IWG shares. Initiate with a Buy rating."
Investors and market watchers will be keeping a close eye on IWG’s progress as it continues to expand its Managed & Franchise division and transitions to a more capital-efficient business model. The endorsement from Jefferies sets a positive tone for the company’s stock as it enters the market this week.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.