Shares of WeWork India experienced a significant surge during Tuesday's trading session, climbing nearly 8% after global financial services firm Jefferies initiated coverage on the company with an optimistic 'Buy' recommendation.
Brokerage Bullish on Flexible Workspace Giant
The international brokerage set a price target of ₹790 per share for WeWork India, indicating a substantial 29% upside potential compared to the stock's previous closing price. This positive assessment comes despite recent challenges in the global coworking sector.
According to Jefferies' analysis, WeWork India holds the dominant position as India's largest flexible workspace provider by revenue. The brokerage highlighted that the flexible workspace sector in India is expanding at an impressive 17% compound annual growth rate (CAGR), which is nearly double the growth rate of traditional office spaces.
Strong Financial Projections and Market Position
Jefferies projects robust financial performance for WeWork India in the coming years. The brokerage forecasts that the company's revenue will increase at a 22% CAGR from FY25 to FY28, while EBITDA is expected to grow even faster at 28% annually during the same period.
In their base case scenario, Jefferies anticipates WeWork India will achieve a revenue CAGR of 20% and EBITDA CAGR of 22% during FY25–28. This growth is expected to be fueled by strong demand for flexible workspaces, elevated pricing structures, and operational efficiencies across their portfolio.
Multiple Scenarios and Price Targets
The brokerage outlined an optimistic scenario where faster adoption of flexible workspaces, improved occupancy rates, and stronger average revenue per member growth could potentially drive WeWork India's stock price to ₹895 per share.
However, Jefferies also cautioned investors about potential risks. In a negative scenario where office demand declines significantly, seating expansions slow, or competition intensifies, the stock could potentially drop to ₹650 per share. The brokerage specifically warned that these factors could result in lower occupancy rates and reduced pricing power.
WeWork India made its stock market debut on both the NSE and BSE on October 10. The initial public offering was structured exclusively as an offer for sale, meaning the company itself did not raise any fresh capital from the listing process.
During Tuesday's trading session, WeWork India shares opened at ₹652.40 apiece on the BSE. The stock reached an intraday high of ₹661.95 per share and touched a low of ₹637.65 per share, demonstrating significant investor interest following the brokerage's positive assessment.
