JP Morgan has initiated coverage of IWG PLC (LSE:IWG), the world's largest flexible workspace provider, with an overweight rating and a December 2027 price target of 260p, implying 46% upside.
The US bank argues flexible working has moved decisively into the mainstream, citing Savills data showing the proportion of flexible office space let to corporates has jumped from 13% in 2020 to 47% in 2025.
IWG, which operates nearly 5,000 locations across more than 120 countries, offers "significant operating leverage" to a structurally supported sector, the broker said.
Its analysts forecast revenue growth of 4% a year to 2030, with adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) compounding at 13% annually and cash flow rising 25% a year over the same period.
The note, titled The Real Space Race, bases its valuation on an enterprise value to EBITDA multiple, with the bank stressing it is letting earnings growth "do the work" rather than relying on any expansion in the rating.
IWG, formerly known as Regus, has shifted in recent years towards a capital-light franchise model, signing up building owners to operate under its brands rather than taking on leases directly.
In late morning trading, the shares were up 1% to 180.8p.
