WeWork (WE) Stock: $10 Price Target And Overweight Rating

By Amit Chowdhry ● Apr 21, 2022
  • The shares of WeWork Inc (NYSE: WE) have received a $10 price target from Piper Sandler. These are the details.

The shares of WeWork Inc (NYSE: WE) have received a $10 price target from Piper Sandler. And Piper Sandler analyst Alexander Goldfarb initiated coverage with an “Overweight” rating.

Goldfarb believes that the company will be cash-flow positive by Q2 2024 with visibility of this time frame in the second half of 2023. And Goldfarb pointed out that ever 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.

Plus Piper Sandler analysts believe that the company can achieve profitability by late 2023 or early 2024, which could accelerate given its flexible workstation business model fits in the post-COVID world. This highlights the fact that desk utilization rates are now 63% vs. 45% at the COVID lows while the office overall is stuck at around 35%.

Piper Sandler expects GAAP EPS of ($2.31) for 2022, ($1.28) for 2023, and ($0.84) for 2024. And the free cash flow forecasts are at ($910 million) for 2022, ($278 million) for 2023, and ($10 million) for 2024.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.