Mizuho Starts ‘Undervalued’ WeWork Shares at Buy, Sees Potential to ‘2x in 2 Years’
2022.04.22 17:06
Mizuho Starts ‘Undervalued’ WeWork (WE) Shares at Buy, Sees Potential to ‘2x in 2 Years’
Mizuho analyst Vikram Malhotra initiated research coverage on WeWork (NYSE:WE) at Buy with a $9.00 per share price target.
The analyst sees WE as an “undervalued play on changing work preferences of both employees and employers.”
He is especially positive about the fact that the flex office market is expected to grow by 50% to over $50 billion in the next 3 years. The core of the analyst’s positive stance on WeWork is the company’s solid position to take market share.
“We see the company’s EBITDA breakeven goal by 4Q22 as very achievable and looking forward, its diverse portfolio and tenant mix should drive pricing power and cash flow growth – two underappreciated catalysts in our view. We see revenue and EBITDA of $4.4Bn and $296mm by 2023 in our base case,” Malhotra wrote in a client note.
WeWork stock is up nearly 2% today.
By Senad Karaahmetovic
