Credit Suisse Thinks WeWork Stock Could Double in Value

The equity is facing several technical obstacles

Digital Content Manager
Jun 23, 2022 at 9:23 AM
facebook twitter linkedin


Credit Suisse just initiated coverage on WeWork Inc (NYSE:WE) stock with an "outperform" rating, and an $11 price target -- which is nearly an 100% premium to last night's close. The analyst said the co-working company could benefit from the hybrid model many offices have adopted since the pandemic. 

In response, WE is up 5.2% at $5.70 ahead of the open. It's been a choppy couple of months for WeWork stock, though the shares look to have found a floor at the $4.80 level. However, several technical obstacles still lay ahead, including the equity's 10-day moving average, and further up, the $7.50 area. WeWork stock has lost over 52% in the past 12 months. 

A look at analyst sentiment shows all three in coverage coming into today considered WeWork a "strong buy." Plus, the 12-month consensus price target of $10 is a hefty 75.4% premium to current levels. 

Meanwhile, short interest has continued to climb, rising nearly 41% in the last two reporting periods. The 66.59 million shares sold short make up 10.3% of the stock's available float, and it would take almost 13 days to buy back these bearish bets, at WE's average daily pace of trading. 

 

If you are not making money with options, you aren’t buying options like this…

There is no options strategy that more perfectly approaches trading the fastest moving and most volatile stocks available in the marketplace than this one. In fact, there is no strategy that better utilizes put options for optimal returns and a real trading edge over other traders in the exact same market. New options traders fail out at an incredible rate without proper trade research, execution timing, and option picking. Capitalize on Schaeffer’s 100+ years of options trading excellence with the most coveted product launch in company history. Don't waste another second... join us right now before the next round of trades are released!

SCHAEFFER'S JULY STOCKS REPORT AD
 


 


 
Special Offers from Schaeffer's Trading Partners