According to Credit Suisse, investors should hold off on buying Rent the Runway until it can once again show significant active subscriber growth. Analyst Michael Binetti downgraded Rent the Runway to neutral from outperform and cut his price target, saying he overestimated the impact a return to social events would have on the fashion rental company’s active subscriber growth in the second quarter. “Significant deterioration in active customer trends in the quarter (active sub-quarter-on-quarter growth slowed to -8% in Q2 vs. Street +7%, down from +17% in Q1) suggests that RENT is more susceptible to macro pressure on aspiring consumers. than we expected,” Binetti wrote in a Monday note. “In other words, consumers don’t see RENT as a way to save money (despite very clear value messages in 2Q marketing) versus the traditional wardrobe ownership model…rather, consumers are protecting household budgets by checking off recurring monthly discretionary charges like RENT. Shares fell 22% in premarket trading Tuesday after Rent the Runway said it was laying off 24% of its corporate workforce as more consumers suspended or ended their subscriptions to the rental service. Rent the Runway reported 124,131 active subscribers in the prior quarter. In addition, the company decided to cut fixed costs by $25 million to $27 million to deal with an uncertain macro backdrop, a decision that analyst worried could be premature for the growing company.Rent the Runway’s shares fell year-to-date are up nearly 40% and 80% below their 52-week high, and the analyst doesn’t expect them to rise from here until the company can reverse active consumer growth trends. of customers can sustainably accelerate again, and the company’s 24% reduction in headcount weighs on our confidence that the improving t Rends in August/September will be sustainable. Binetti wrote. “We prefer to move to the margins of better evidence that the consumer sees apparel rental as a strong enough value to avoid the more controllable costs associated with the traditional apparel ownership model,” Binetti added. The firm’s price target, which was cut to $4 from $7, represents a roughly 18.9% downside for Rent The Runway from Monday’s closing price of $4.93. —CNBC’s Michael Bloom contributed to this report.