Stock Groups

WeWork Gains on New Buy Rating at Piper Sandler -Breaking

© Reuters. WeWork (WE), gains from new Piper Sandler buy rating

After Alexander Goldfarb, a Piper Sandler analyst and an overweight rating gave the company a $10 target price and gave it a $11 price target on Monday, shares of SPAC WeWork (WE), the downfall unicorn gained almost 4%. According to analysts, the company should be cash-flow neutral by Q2/24. Visibility of that timeframe will occur in the second quarter 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.

According to analysts, the company could achieve profitability in late 2023/early 20,24. That is if its flexible business model for work stations fits into the post-COVID environment. It also highlights the fact that current desk utilization rates have dropped to 63% from 45% during the COVID lows. Office overall remains at about 35%.

GAAPEPS are forecasted at ($2.31, ($1.28, and ($0.84) in 2022, 2023, 2024, and 2024. FCF Forecasts for 2022 are at $910 Million, $278 Million, 2023 and $10 million, respectively.

By Davit Kirakosyan

Mike Robinson
Mike covers the financial, utilities and biotechnology sectors for Street Register. He has been writing about investment and personal finance topics for almost 12 years. Mike has an MBA in Finance from Wake Forest University.