Rent the Runway Faces Price Target Cuts By Analysts Following Q2 Results, Shares Tumble

Rent The Runway Inc RENT reported better-than-expected financial results but issued guidance below analyst estimates and announced a 24% workforce reduction.

The company announced a restructuring plan to reduce costs, streamline its organizational structure and drive operational efficiencies. The plan primarily includes a total workforce reduction of approximately 24% of corporate employees, reorganizing certain functions, and reallocating resources to continue to focus on customer experience and growth initiatives.

Rent the Runway shares dipped 23.1% to $3.79 in pre-market trading.

Several analysts made changes to their price targets on Rent the Runway today.

• Credit Suisse cut the price target on the stock from $7 to $4. Credit Suisse analyst Michael Binetti also downgraded the stock from Outperform to Neutral.
• Telsey Advisory Group lowered price target on the stock from $13 to $8. Telsey Advisory Group analyst Dana Telsey maintained Rent the Runway with an Outperform.
• Piper Sandler reduced the price target on the stock from $10 to $6. Piper Sandler analyst Edward Yruma maintained an Overweight rating on the stock.
• Barclays cut the price target on the stock from $7 to $6. Barclays analyst Ross Sandler an Overweight rating on the stock.
• JMP Securities lowered Rent the Runway price target from $12 to $6. JMP Securities analyst Andrew Boone maintained a Market Outperform rating on the stock.
• Raymond James cut Rent the Runway’s price target $9 to $8. Raymond James analyst Rick Paterson maintained the stock with an Outperform.
• Morgan Stanley lowered price target on the stock from $14 to $13. Morgan Stanley analyst Lauren Schenk maintained Rent the Runway with an Overweight.