WeWork Gains on New Buy Rating at Piper Sandler
Investing.com
Published Apr 18, 2022 01:53PM ET
Updated Apr 18, 2022 06:25PM ET
WeWork (WE) Gains on New Buy Rating at Piper Sandler
Shares of the fallen unicorn turned SPAC WeWork Inc (NYSE:WE) gained nearly 4% after-hours Monday after Piper Sandler analyst Alexander Goldfarb imitated coverage with an Overweight rating and a $10 price target. The analysts believe the company will be cash-flow positive by Q2/24, with visibility of this time frame in the second half of 2023.
Since Chairman and CEO Sandeep Mathrani joined in 2020, the company’s focus has been expense rightsizing, with over $1.5 billion eliminated so far.
The analysts believe the company can achieve profitability by late 2023/early 2024, which could accelerate given its flexible work station business model fits in the post-COVID world, highlighting the fact that desk utilization rates are now 63% vs. 45% at the COVID lows, while office overall is stuck at around 35%.
The brokerage expects GAAP EPS of ($2.31) for 2022, ($1.28) for 2023, and ($0.84) for 2024. FCF forecasts stand at ($910 million) for 2022, ($278 million) for 2023, and ($10 million) for 2024.
By Davit Kirakosyan
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Written By: Investing.com
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