RBC Capital downgrades IWG on valuation

RBC Capital Markets downgraded its stance on stock of office space provider IWG on Thursday to ‘sector perform’ from ‘outperform’ following recent share price strength.

The bank said it still likes the long-term potential and sees IWG as becoming an even more dominant market leader.

"However, the shares have bounced strongly, the catalysts of further franchising deals are unlikely in the short-term and we see risk reward now more balanced with the valuation circa 20% above our mid-cycle valuation of the existing estate at maturity."

RBC lifted its price target to 325p from 275p.

At 1320 BST, the shares were down 3.1% at 293.80p.