What happened

Shares of WeWork (WE) jumped on Tuesday, following encouraging analyst remarks. As of 3:33 p.m. ET, the coworking company's stock price was up more than 20%. 

So what

WeWork is a leader in the burgeoning flexible workspace market. Yet the company has struggled with overexpansion-related challenges and other missteps in recent years. WeWork's shares, in turn, went on to shed more than 70% of their value after its market debut in October 2021. 

Yet Cantor Fitzgerald analyst Brett Knoblauch believes better times are ahead for investors. Knoblauch placed an overweight rating on WeWork's stock on Monday. He sees its share price tripling to $8.

After years of shrinking its real estate portfolio and rightsizing its cost structure, WeWork has reduced its expenses by $2.7 billion, according to Knoblauch. These cost cuts should help to improve WeWork's profitability in the coming year.

Looking further ahead, Knoblauch expects WeWork to benefit from the long-term trend toward remote work and distributed workforces, along with the corresponding need for companies to obtain greater flexibility in their office lease agreements. 

Now what

WeWork offers businesses the ability to tailor their office space to their changing needs. On-demand desk rentals via monthly subscriptions in over 700 locations across the U.S. and numerous international markets provide valuable flexibility in a dynamic economic environment. 

WeWork's recent results suggest more companies are beginning to recognize the benefits it delivers. WeWork's revenue surged 37% year over year to $815 million in the second quarter. For the full year, management is forecasting revenue of approximately $3.5 billion in 2022, which would represent growth of roughly 35% from the prior-year period.