WeWork Inc. (NYSE:WE) looks like an interesting opportunity. All as demand for flexible workspace increases. According to Entrepreneur contributor Punita Sabharwal, “The flex workspace industry has seen about 1000% of growth over the last decade and it is anticipated to account for 30% of all office space by 2030.”
Even better, according to JLL’s 2021 Global Flex Space Report, 41% of tenants expect to increase their use of flex space in the post-pandemic world. “The adoption rate will vary among industries, but we still expect flex space to represent 30% of the market by 2030,” says Jacob Bates, Managing Director, Head of Americas Flexible Space at JLL. Those are key catalysts for companies, like WeWork.
Piper Jaffray Has a $10 Price Target on WeWork
In addition, analysts like the stock, too. Piper Sandler analyst Alexander Goldfarb for example, just initiated coverage of WE with an overweight rating. He also has a $10 price target
. WeWork also reported fourth-quarter 2021 revenue of $718 million, a 9% increase from $661 million in the third quarter. It’s also the second consecutive quarter of sequential revenue growth. It also posted a net loss of $803 million in the fourth quarter 2021, a 5% jump year over year.
Insiders are bullish, as well. In fact, CEO Sandeep Mathrani bought 30,000 shares of WE in late March 2022 for about $195,000. The CEO now owns 1.73 million shares of the company. The last time the CEO bought stock, he picked up 29,600 shares for about $8.46.
Granted, the stock has been beaten up since late 2021. However, with several big catalysts ahead of it, I’d like to see shares of WE retest $9.50 again soon. Longer-term, I’d like to see the WE stock retest its October 2021 high of about $10.66. We’ll learn more about what’s ahead for WeWork when it posted Q1 2022 earnings on May 12 prior to market open.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
