Westwing Group SE: Strategic Growth Amid Capital Constraints

NuWays AG has issued a 'BUY' recommendation for Westwing Group SE with a target price of EUR 18.00 over the next 12 months. Westwing, known for its unique positioning in the home and living sector, blends its premium products with select third-party design items, creating a distinct niche in the European market.

Projected sales growth for FY'25 remains modest, influenced by a strategic shift towards higher-margin Westwing Collection products. This internal drive is expected to generate a 12-13% increase in sales for FY'26, offsetting stagnation in third-party sales and anticipating gains from expanding into new countries.

Despite a robust financial base, including a €57m net cash position, Westwing faces limited capital allocation options. The focus remains on internal growth levers and improving margins, with M&A being a potential strategy amid scarce suitable targets.