Rent The Runway price target lowered to $3 from $6 at Barclays

Barclays analyst Ross Sandler lowered the firm’s price target on Rent The Runway to $3 from $6 and keeps an Overweight rating on the shares. The company reported revenue and adjusted EBITDA that were $4M and $5M above consensus and "sounded upbeat," Sandler tells investors in a research note. The company is making strides on getting the cost structure to a level that would make the business self-funding, and these results should provide the investment community with increased confidence around that goal, says the analyst. Despite this "solid progress," Rent The Runway shares are likely to continue to remain range-bound until negative free cash flow "stories find a valuation floor," contends Sandler.