By Sam Boughedda
Investing.com -- WeWork Inc (NYSE:WE) stock gained in early Tuesday trading after Piper Sandler analyst Alexander Goldfarb initiated coverage of the company's shares with an Overweight rating and a $10 price target.
In a note to investors, the analyst explained that the market is underappreciating expectations for the company, a provider of coworking spaces, to achieve profitability by late 2023 or early 2024.
He added that the company's flexible workstation business model "could accelerate" as it fits well in the post-Covid world.
Goldfarb contends that he is comfortable with the profitability expectation with desk utilization rates now 63%, compared to 45% during Covid-related lows. In addition, the analyst wrote that the office overall is "stuck" at 35%, which he feels demonstrates the appeal of the WeWork model.
WeWork Stock is currently 7% above Monday's close.