Piper Sandler downgraded Rent The Runway to Neutral from Overweight with a price target of 75c, down from $2. The equity value represents a “mere” 20% of total enterprise value, and meaningful reduction in leverage will be necessary over the medium-term, the analyst tells investors in a research note. The firm says that while Rent The Runway’s recent cost initiatives should help drive better financial performance near-term, both marketing and inventory investments may be needed to drive the necessary long-term growth.
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Read More on RENT:
- Rent The Runway price target lowered to $2 from $3.50 at Goldman Sachs
- Rent The Runway price target lowered to $1 from $4 at Wells Fargo
- Rent The Runway price target lowered by $1 at Barclays, here’s why
- Rent The Runway backs FY23 revenue view at least $296.4M, consensus $286.84M
- Rent The Runway sees Q4 revenue at least $74M, consensus $73.51M
