WeWork Shares Surge As Jefferies Initiates Buy Coverage — Check Target Price
WeWork India has a strong presence in hybrid work segment, with the company's focus on higher-end offerings helping it command a superior revenue per member than its peers.
Shares of WeWork India is buzzing in trade on Tuesday's trading session, with the stock seeing surge of more than 5%. The stock is currently trading at Rs 647, compared to Monday's closing price of Rs 618.
Jefferies has initiated coverage on recently-listed WeWork India, offering a rather bullish outlook. The brokerage firm pointed out the company's strong positioning and how it is poised to capture the hybrid work model opportunity in the country.
The firm has initiated coverage with a 'buy' rating on WeWork India, with a target price of Rs 790 for a stock that has gained 3.4% since listing on the bourses.
In its latest note, Jefferies has pointed out the flexible workspace market in India, which is expanding at a CAGR of 17% - twice the pace of traditional offices.
This is indicative of how more and more Indian companies are opting for the variable, plug-and-play model rather than traditional long-term leases.
WeWork India, to that end, has a strong presence in this segment, with the company's focus on higher-end offerings helping it command a superior revenue per member than its peers.
Jefferies also notes that WeWork India is funded adequately for expansion, thus allowing the company to deepen its presence in major cities by coming up with fresh offerings.
The brokerage firm expects the operator to deliver a 22% CAGR in revenue and a 28% CAGR in Ebitda between FY25 and FY28.
Jefferies further said that WeWork India's flexible, premium workspaces, improving operational metrics and expansion visibility, support the entity's valuation.
Jefferies believes WeWork India’s momentum, supported by long-term structural drivers, leaves room for further upside as large companies in India continue shifting a portion of their office footprint toward flexible formats.
