Sam Boughedda

Investing.com — WeWork Inc (NYSE:) stock gained in early Tuesday trading after Piper Sandler analyst Alexander Goldfarb initiated coverage of the company’s shares with an Overweight rating and a $10 price target.

The analyst wrote to investors that market expectations are underestimating for the company (a provider of coworking space), to reach profitability in the late 2023 to early 2024.

He stated that flexible working hours could be an advantage for the company, as they fit well into the post-Covid world.

Goldfarb asserts that he’s comfortable with the expectation of profitability with desk utilization rates at 63% now, up from 45% during Covid related lows. Additionally, Goldfarb stated that overall office utilization rates are at 35%. This is a testament to the WeWork model’s appeal.

WeWork stock is currently at 7% higher than Monday’s closing.