gorodenkoff
Morgan Stanley lost faith in Rent the Runway (NASDAQ:RENT) after recent data showed a concerning reversal in web traffic to the company’s site.
The firm warned that web traffic decelerated vs. Q2 by ~750 basis points to imply that the retailer’s net subscriber additions for the quarter will likely miss expectations.
“As a result, we now project just +6K net adds in 3Q, below our prior estimate/consensus at +14K/+11K. Notably, app data and search volume both corroborate the October deceleration, giving us more confidence that the data is at minimum directionally accurate,” updated analyst Lauren Schenk.
Schenk and team lowered the rating on Rent the Runway (RENT) to Equal-weight from Overweight and assigned a price target of $2.50.
Rent the Runway is generally viwed favorably on Wall Street with 9 Buy-equivalent ratings stacking up against 2 Hold-equivalent ratings and no Sell-equivalent ratings.
Shares of RENT moved up 3.47% in premarket trading to $1.49 vs. the 52-week trading range of $1.37 to $18.46.
Source: news.google.com
