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Highlights

  • Analysts at Stifel Europe and Berenberg reaffirm BUY ratings with price targets of GBP 250 and GBP 270, implying 17.81% and 27.24% upside respectively.

  • IWG’s Q1 2025 results highlight revenue growth, expanded network coverage, and a share buyback programme increase from $50M to $100M.

  • Net financial debt reduced by $83M YoY, underlining improved balance sheet strength and operational resilience.

International Workplace Group Plc (LSE:IWG), the global leader in hybrid workspaces operating brands like Regus, Spaces, and Signature, has drawn BUY ratings from leading research firms amid its quarterly performance and an expanded capital return strategy. Both Stifel Europe and Berenberg maintained “2-BUY” recommendations, forecasting up to 27.24% potential upside from current price levels.

The average analyst target price stands at GBP 243.25, up +14.63%, compared to the current share price of GBP 212.2. Berenberg set a high target of GBP 270, while Stifel forecasts GBP 250, reflecting increasing confidence in IWG’s earnings trajectory and capital discipline.

Q1 2025 Performance

For the three months ended 31 March 2025, IWG reported system-wide revenue of $1.057 billion, up 2% YoY. Growth was more pronounced in its Managed & Franchised division, which posted a 23% YoY increase in system revenue, driving a 43% jump in fee income.

The Company-owned division also showed significant performance, with 3% revenue growth from open centres, as workspace demand remained resilient across core markets.

IWG continued to expand its global presence, recording 224 new workspace signings and 165 openings in Q1 2025, compared to 212 signings and 142 openings a year ago. 

Capital Allocation

Signaling financial strength, IWG has successfully executed over $30 million of the $50 million share buyback programme announced earlier this year. On the back of continued cash generation, the company has doubled the buyback programme to $100 million, with the first tranche expected to be completed before the H1 2025 results on 5 August.

Moreover, IWG has reduced its net financial debt by $83 million over the past 12 months and continues to pursue further deleveraging. This dual approach of balance sheet improvement and shareholder returns reinforces investor confidence, especially as the company maintains its FY25 EBITDA guidance of $580M–$620M.