The analyst initated coverage with an "outperform" rating
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.