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