Credit Suisse initiated protection of the office-sharing firm WeWork with a bullish name. The agency on Wednesday gave WeWork an outperform score and set a worth goal of $11 on the inventory, which is greater than double the place the inventory closed Wednesday. “We believe WeWork is well positioned to take advantage of the structural demand drivers for the flex office industry, as we view Work From Home as a long-tailed overhang to demand for traditional office space,” Credit Suisse analyst Tayo Okusanya mentioned in a be aware Thursday. WeWork has undergone a large $2.6 billion company restructuring after the blowup of its IPO try in 2019 that led to the eviction of its then-CEO. Still, “WeWork 2.0 should work,” Okusanya mentioned, including that the corporate maintains its first-mover benefit and world scale, which is an enormous plus for the inventory. “Attractive total addressable market, market share gains, new product introduction, and improved focus on the bottom line should pave the way for positive Free Cash Flow by 2023, an improved capital structure, and better cost of capital,” he mentioned. He added that analysts count on free money stream to show constructive within the third quarter of subsequent 12 months and speed up in 2024, as the corporate’s development technique pivots from “capex intensive traditional leases to asset-light deals (revenue share/management), which require significantly less or no capex.” —CNBC’s Michael Bloom contributed reporting.
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