You are here

Prices & Quotes - UK Markets - IWG (IWG)

Risk Warning The value of investments can fall as well as rise and any income from them is not guaranteed and you may get back less than you invested. Past performance is not a guide to future performance.

Share Price:
Down 290.10p
Change Today:
Market Cap:

Berenberg lowers IWG from 'buy' to 'hold'

By Iain Gilbert

Date: Thursday 11 Mar 2021

LONDON (ShareCast) - (Sharecast News) - Analysts at Berenberg cut their rating on serviced offices provider IWG from 'buy' to 'hold' on Thursday, stating they were "pausing for breath" as recovery waits.
Berenberg stated that after "an incredibly challenging year" for IWG, it believes the company has come out of 2020 in "a strong position", highlighting that the business was lowly levered, had remained cash-generative throughout the Covid-19 pandemic, had seen the benefits of its national and global model with large corporate enterprise deals and had made "clear steps" on the path to a capital-light growth model.

Given this, the German bank thinks IWG has a "clearer competitive advantage" in a post-Covid-19, flexible-working world, in a market that looks well set to take share over the long run.

"Therefore, in our view, the long-term outlook for the group is strongly positive," said Berenberg.

However, Berenberg said a second downgrade to its forecasts in three months highlighted the risks to earnings as IWG emerges from the pandemic, with occupancy likely to need time to recover from a lower base as global lockdowns have lasted longer than initially expected.

"In turn, this then makes the near-term outlook for material master-franchising deals weaker, limiting potential positive catalysts," said the analysts, who also lowered their target price on the stock from 425.0p to 370.0p.

"Alongside risks to a recovery and lower upside to our preferred valuation approaches, we consider now a sensible time to pause for breath and wait for a more attractive entry point to return as buyers."

Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.


IWG Market Data

Currency UK Pounds
Price 290.10p
Change Today -6.10p
52 Week High 383.60p
52 Week Low 222.60p
Volume 2,911,916
Shares Issued 1,007.36m
Market Cap 2,922.36m

Performance Indicators

Compare performance with the sector and the market.

Vs Market
Vs Sector
Not Available
Price Trend
Not Available
Not Available
Not Available
Price Chg 6m
Not Available
Not Available
Not Available
Dividend Yield
Not Available
EPS Growth
Not Available
Operating Margin
Not Available

What The Brokers Say

Strong Buy 5
Buy 1
Neutral 4
Sell 0
Strong Sell 0
Total 10
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

IWG Dividends

  Latest Previous
  Interim Final
Ex-Div 05-Sep-19 25-Apr-19
Paid 04-Oct-19 24-May-19
Amount 2.15p 4.35p

Trades for 18-Jun-2021

Time Volume / Share Price
16:57 566 @ 290.10p
16:47 6,460 @ 290.10p
16:46 566 @ 290.10p
16:35 1,341,732 @ 290.10p
16:29 4 @ 291.10p

IWG Key Personnel

Chair Douglas Sutherland
CEO Mark Dixon
CFO Glyn Hughes