Original-Research: Westwing Group SE (von NuWays AG): BUY

Classification of NuWays AG to Westwing Group SE

Company Name:	Westwing Group SE
ISIN:	DE000A2N4H07
Reason for the research:	Update
Recommendation:	BUY
Target price:	EUR 23.5
Target price on sight of:	12 months
Last rating change:
Analyst:	Christian Sandherr

Conference feedback: Successfully sailing through tough markets

Following the recent share price weakness, we see roughly 100% upside at current levels. Impressions at our conference in Paris confirm our bullish view on the case. In detail:

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 UK with a local online store and a curated assortment. Traction seems to quickly build up. To further support the launch, the company recently announced a collaboration with Victoria Beckham (launch on Oct 12th), building on its existing ties to the designer. We see the partnership as a way to significantly raise brand awareness in a market where Westwing is still largely unknown, and the UK remains one of the more important markets to watch for the international growth story. Mind you, we estimate the UK Home & Living market at around € 20bn, representing roughly 15% of Westwing’s existing addressable market, making this by far the largest single market addition in the company’s history.

Current trading. Sales are tracking in the upper half of the guidance range, with Westwing continuing to gain market share, especially internationally, where the company is in the midst of ramping up recent country launches. In DACH, consumer sentiment in Germany remains challenging, largely unchanged versus Q2, and still weighs on KPIs (e.g. lower AOVs) in the key market. Store openings should partially offset those headwinds. At the same time, ongoing marketing investments in the UK weigh on profitability. We expect the FY adj. EBITDA margin to decline by 1.2pp yoy to 8.6% (eNuW), reflecting the challenging home market as well as deliberate growth investments of c. € 10m, with the UK being the largest one, next to further store openings. In our view, the mid-point of the adj. EBITDA guidance should still be within reach.

Valuation remains highly attractive. At a mere 4.8x FY26e EV/adj. EBITDA, valuation remains undemanding for a business with this quality and trajectory. Westwing combines sustainable growth with good and increasing profitability and a strong balance sheet (€ 90m net cash at YE). The UK and the newly entered markets add further growth options, while the successful turnaround and management's consistent delivery of the value creation plan underpin our conviction in the investment case. We confirm our BUY rating with an unchanged PT of € 23.50, based on DCF.

You can download the research here: westwing-group-se-2026-10-07-update-en-5b3de
For additional information visit our website: https://www.nuways-ag.com/research

Contact for questions:
NuWays AG - Equity Research
Web: www.nuways-ag.com
Email: research@nuways-ag.com
LinkedIn: https://www.linkedin.com/company/nuwaysag
Adresse: Mittelweg 16-17, 20148 Hamburg, Germany
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Offenlegung möglicher Interessenkonflikte nach § 85 WpHG beim oben analysierten Unternehmen befindet sich in der vollständigen Analyse.
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