WeWork soars as Jefferies initiates coverage; 45% upside seen in bull case

Jefferies gave a 'Buy' rating for WeWork with a target of ₹790 per share, an upside potential of 28 per cent from Monday's close

Shares of WeWork India Management Ltd rose over 7 per cent as analysts at Jefferies initiated coverage with nearly 30 per cent upside to the stock price, citing the strong growth rate in office demand and rising flex space penetration. 

 

The brokerage firm gave a 'Buy' rating for the WeWork stock with a target of ₹790 per share, an upside potential of 28 per cent from Monday's close. In its bull case scenario, the analysts assigned a target of ₹895 apiece, an upside of 45 per cent. 

 

Jefferies said strong underlying office demand and rising flex-space adoption should enable WeWork to add about 15,000-20,000 seats annually over the next three years, compared with 109,600 seats as of March 2025. The brokerage expects margins to improve as centres mature, operating leverage builds, and average revenue per member rises by around 5-6 per cent. 

 

Total revenue grew at a 22 per cent CAGR over FY23-25, driven by a sharp rise in demand for flex office space (66 per cent) and higher ARPUs (33 per cent).   ALSO READ | DMart to Swiggy: CLSA picks top stocks to ride India's consumption story 

Operating leverage helped expand adjusted Ebitda (IGAAP) margins from 14.4 per cent in FY23 to 19.2 per cent in FY25, the highest among peers, Jefferies noted. The company’s premium positioning is also reflected in its peer-leading 2.7x revenue-to-rent ratio in FY25, a key driver of profitability, it said. 

 

The brokerage noted that flexible workspace stock in India’s Tier 1 cities has expanded from about 35 million sq. ft. at the end of 2020 to roughly 85 million sq. ft. by the end of 2024, taking its share to around 11 per cent of total office stock. Demand is being driven by flexibility, capital efficiency, cost optimisation and operational outsourcing, it said. 

 

In 2024, flex operators accounted for nearly 20 per cent of total office absorption, supported in large part by Global Capability Centres seeking high-quality flexible office space.

 

WeWork India stands out as a leader in India’s fast-growing flexible workspace sector. Its premium brand, strategic locations in Grade A buildings, and strong enterprise client base enable WeWork India to command industry-leading pricing and margins, Jefferies said. " While the sector’s penetration is still rising, we think WeWork India’s operational scale, robust cash flows, and ability to add seats efficiently underpin a compelling growth and profitability outlook."  ALSO READ | Groww enters top 100 most-valuable club; stock up 94% from IPO price

WeWork share price 

 

The coworking company's stock rose as much as 7.81 per cent during the day to ₹662.8 per share, the steepest intraday rise since listing this year. The WeWork India Management stock pared gains to trade 4.7 per cent higher at ₹643.7 apiece, compared to a 0.50 per cent advance in Nifty 50 as of 10:35 AM. 

 

Shares of the company currently trade at 2.1 times the average 30-day trading volume, according to Bloomberg. The counter has fallen nearly 1.5 per cent since listing on October 10, compared to a 2.9 per cent advance in the benchmark Nifty 50. WeWork has a total market capitalisation of ₹8,596.92 crore.