- Mizuho analyst Vikram Malhotra reiterated a Buy on WeWork Inc (NYSE:WE) with a $9 price target.
- WeWork reported 3Q results, with a headline miss on revenue and EBITDA, but adjusted for FX was more in line.
- A key positive was the company’s plans to exit underperforming locations, reducing the top line but improving profitability.
- In addition, WeWork extended the maturing of specific debt capacity by a year and extended its letter of credit (LC).
- Negatives include stalling the occupancy ramp and delaying its positive cash flow goal, which will require additional capital rises.
- Given these negatives, bears will be concerned near term and will focus on the need for more restructuring and strategic steps, given tech job losses.
- However, the core flex office business can keep outperforming versus core traditional Office, and there is room for additional cost reduction, both likely catalysts.
- He saw WeWork as an undervalued play on changing work patterns.
- Price Action: WE shares traded higher by 9.04% at $2.83 on the last check Friday.
Twitter Hired Law Firm Wachtell, Lipton, Rosen & Katz to Sue Musk Over Dropped Takeover
-Bloomberg
https://www.bloomberg.com/news/articles/2022-07-10/twitter-assembles-legal-team-to-sue-musk-over-dropped-takeover?sref=GRuKmDtM&utm_content=business&utm_source=twitter&utm_campaign=socialflow-organic&utm_medium=social&cmpid=socialflow-twitter-business
