WeWork Inc. WE is nearing the end of a multi-year cost rationalization and real estate optimization strategy that Cantor Fitzgerald says has already reduced costs by $2.7 billion.
The Analyst: Brett Knoblauch initiated coverage of WeWork with an Overweight rating and an $8 target price.
The thesis: The market appears to be underestimating the company’s future cash generation capabilities, which could offer significant upside potential, Knoblauch said in the opening statement.
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“Demand for flexible workspace has remained robust post-pandemic, and we believe corporate departures from traditional office leasing strategies will be a decade-long tailwind,” the analyst wrote. “WeWork will be able to extend debt maturities to allow for debt repayments beginning in 2025E, which we expect to generate more than $500 million in FCF.”
WE Price Promotion: Shares of WeWork were up 7.66% to $2.25 in premarket trading on Monday.
See also: How to buy WeWork stock
