- International Workplace Group
- 06 February 2026 10:32:41
Source: Sharecast
On 4 December, IWG hosted an investor day outlining a continuation of the plan that management had set out in 2023, but with "strategic pace" set to accelerate, said Berenberg.
The German bank said IWG was building "strong momentum" towards growing its capital-light managed and franchised division, which today represents roughly 33% of group locations. However, including IWG's current pipeline, Berenberg noted that this would increase to 50% with the company seeing scope and potential to push this towards approximately 80% and beyond by 2030.
"As the company executes against its plan, we expect a steep inflection in FCF generation and with a robust balance sheet, IWG has potential to execute material buybacks," said Berenberg, which reiterated its 'buy' rating on the stock.
"IWG trades on 6.5x FY26 EV/EBITDA and at its current price, we expect it to average a c9% FCF yield over FY26-28E, and to reach c11% in FY27E. We adjust our WACC in our DCF valuation to 10%, reflecting delivery of its strategic plan and our price target increases to 350p/share."
Reporting by Iain Gilbert at Sharecast.com