AlsterResearch AG Initiation: Westwing AG - A very comfy investment
We initiate coverage of Westwing with a BUY rating and a price target of EUR 47.00. Westwing is a home & living e-Commerce platform for third party products and its own brand “Westwing Collection”.
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What’s it all about?
We initiate coverage of Westwing with a BUY rating and a price target of EUR 47.00. Westwing is a home & living e-Commerce platform for third party products and its own brand “Westwing Collection”. With its tight focus on “home enthusiasts” who generally are willing to spend more on “beautifying” their homes, Westwing is targeting an affluent, highly loyal clientele thereby differentiating itself from competition who are rather targeting price sensitive mass markets. A strong social media presence coupled with a clear and modern web appearance, allows Westwing to reach this young and agile target group, ultimately translating into significant growth in a structurally shifting market from offline to online. An asset light business model due to modest capex requirements and negative w/c, additionally sets the stage for a unique combination of strong top and bottom line growth as well as value creation as seen in high double digit ROCEs of 18%+ (2022E).