(Sharecast News) – RBC Capital Markets cut its price target on IWG on Monday to 155p from 190p, keeping the rating at ‘sector perform’ as it sees better value in other cyclicals.
“Whilst IWG’s recent update pointed to FY trading in line with expectations, we have reduced our 24E EBITDA forecasts by 10%,” RBC said.
“This reflects forex, caution on the overall macro and impact on supply/usage of office space, along with uncertainty around WeWork’s future (and ongoing pricing strategy).
“In our view, whilst a SOP buy case could be constructed, we have limited granularity on Worka and there are just too many uncertainties at this point.”
