Last checked at (Sharecast News) - Analysts at Berenberg cut their target price for shares of IWG, citing an overoptimistic consensus on the outlook for 2022/23 after downgrading their estimates for the workspace specialist for a fifth time in a row.
True, occupancy and pricing appeared to have hit bottom, they conceded.
IWG had also booked £190m of costs savings in the first half of the year and the switch to a 'capital light' model was a "source of medium-term" optimism.
Nonetheless, they went on to add that the business remained heavily in the red and as IWG reinvested to drive growth "occupancy and client spend will need to recover materially before a recovery even close to pre-crisis levels of profits can be achieved."
Hence, the target price was reduced from 370.0p to 310.0p with the recommendation unchanged at 'hold'.
11 Mar 2021 12:02
Berenberg lowers IWG from 'buy' to 'hold'
(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.
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