IWG share price could jump by 17.8% to 200p soon

IWG (LON: IWG) share price has wavered recently as investors wait for the next catalyst. The shares were trading at 170p on Tuesday, a few points below last month’s high of 181p. It has soared by over 32% from the lowest level in June.

WeWork woes are continuing

IWG is a leading company in the hybrid workspace industry. It provides individuals and companies with flexible workspaces around the world. It operates through numerous brands that are tailored for different types of clients.

For example, Regus focuses on small private offices while Signature is a premium city-center brand. Its other brands like Basepoint, HQ, and The Clubhouse target other types of companies. 

Demand for these hybrid workspaces is expected to continue growing in the coming years. A recent report by Deloitte showed that 56% of all adult workers were either working remote or in a hybrid environment. 

IWG is in a special place for this trend because of its global reach and the fact that WeWork, its biggest competitor, is imploding. Last week, in a sign of desperation, WeWork told its landlords that it would renegotiate most of its lease agreements. 

The company, which is now valued at just $163 million, has lease agreements worth over $13 billion. Most of these leases come due before 2028, putting the company under intense pressure.

Therefore, WeWork woes could benefit IWG, which uses a franchise model that is substantially asset-light. This explains why IWG business is booming, as I wrote in this article. 

IWG’s revenue jumped by 14% in the first half of the year to 1.7 billion pounds while its EBITDA jumped to 198 million pounds. The company also reduced its debt load by 54 million pounds to 658 million pounds.

IWG is also considering making some huge changes in its operations. Like other companies, it is considering moving its listing to the United States. It is also thinking of moving its reporting currency to the US dollar.

IWG share price forecast

IWG chart by TradingView

The daily chart shows that the IWG stock price has made a strong recovery after it settled to a low of 130p in July. The shares have formed what looks like it has formed an inverted head and shoulders pattern. It has also formed what looks like a symmetrical triangle pattern.

IWG shares are about to form a golden cross pattern when the 50-day and 200-day moving averages make a bullish crossover. Therefore, the outlook for the stock is bullish, with the next level to watch being at 200p, the highest point on February 2nd. This price is ~17.8% above the current level.