NuWays reiterates Buy on Westwing, sees around 100 percent upside

Hamburg - In an update on Westwing Group SE (ISIN: DE000A2N4H07), analyst Christian Sandherr of NuWays AG has reiterated a "BUY" recommendation with a 12-month target price of 23.50 euros.

Following the recent share price weakness, the research firm sees roughly 100 percent upside at current levels. Impressions at the firm's conference in Paris confirm a bullish view on the investment case.

Growing international presence

After entering the Baltic states (Estonia, Latvia and Lithuania) at the end of July, the company has now also launched in Ireland and Bulgaria, bringing its European presence to 28 countries.

The step-by-step rollout fits the asset-light, platform-based approach of serving new markets from the existing logistics and sourcing set-up, rather than building local infrastructure.

While the incremental revenue contribution is likely small, it clearly underpins the successful execution of the company's strategic transformation.

UK ramp-up going well

In March, Westwing entered the United Kingdom with a local online store and a curated assortment, where traction appears to be building quickly.

To further support the launch, the company recently announced a collaboration with Victoria Beckham, launching on October 12, building on existing ties to the designer.

The partnership is viewed as a way to significantly raise brand awareness in a market where Westwing is still largely unknown. The UK remains one of the critical markets to watch for the international growth story, with the UK Home & Living market estimated at around 20 billion euros—representing roughly 15 percent of Westwing's addressable market and making it the largest single market addition in company history.

Current trading

Sales are tracking in the upper half of the guidance range, with Westwing continuing to gain market share, especially internationally as country launches ramp up.

In the DACH region, consumer sentiment in Germany remains challenging, largely unchanged versus the second quarter, and continues to weigh on key performance indicators such as average order values. Planned store openings are expected to partially offset these headwinds.

At the same time, ongoing marketing investments in the UK weigh on profitability. The full-year adjusted EBITDA margin is forecast to decline by 1.2 percentage points year-on-year to 8.6 percent, reflecting the challenging home market as well as deliberate growth investments of approximately 10 million euros, led by the UK expansion and retail openings.

The mid-point of the adjusted EBITDA guidance is considered to remain well within reach.

Valuation remains highly attractive

At 4.8x FY26e EV/adj. EBITDA, valuation remains undemanding for a business with this trajectory.

Westwing combines sustainable growth with improving profitability and a strong balance sheet, supported by 90 million euros in net cash at year-end.

The UK and the newly entered markets add further growth optionality, while the turnaround and management's delivery of the value creation plan underpin conviction in the investment case, confirming the BUY rating with an unchanged target price of 23.50 euros based on discounted cash flow analysis.