Rent The Runway downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley analyst Lauren Schenk downgraded Rent The Runway to Equal Weight from Overweight with a price target of $2.50, down from $10. Recent web traffic data suggests a “meaningful October slowdown” and a Q3 subscriber miss after an encouraging September, Schenk tells investors in a research note. The analyst says Rent The Runway’s business has proven to be more volatile than originally anticipated, which could lead it to take longer to reach the 300,000 subscriber base needed to achieve profitability. Improving web traffic trends seen from July- September have “reversed at a striking magnitude” in October with a sharp deceleration in growth, writes Schenk.