Rent The Runway price target lowered by $1 at Barclays, here’s why

Barclays analyst Ross Sandler lowered the firm’s price target on Rent The Runway to $2 from $3 and keeps an Overweight rating on the shares. The analyst says the company continues to work on aligning its cost structure with the realities it faces of “massive debt, shrinking equity value and elevated cash burn.” The goal of reaching positive free cash flow in 2024 looks achievable as rental purchase capex comes down meaningfully, but Rent The Runway will need to execute, the analyst tells investors in a research note.