IWG Share News (IWG)

(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'.