Shares of Allbirds could see limited upside until the path to profitability becomes more clear, according to Morgan Stanley. Analyst Alex Straton downgraded Allbirds to equal-weight from overweight, and slashed its price target, following a quarterly earnings report that pointed to greater economic uncertainty for retailers. Allbirds lowered its guidance for the year after citing a slowdown in consumer demand. The footwear retailer announced several cost-cutting efforts, including “dramatically” slowing the pace new corporate hires. The company reported a greater quarterly loss compared with the prior year. “Macroeconomic deterioration, slower sales growth, & a potentially longer timeline to profitability likely pushes out the re-rating catalyst we had hoped for,” Straton wrote in a Wednesday note. “We think the stock could remain range-bound until the path to profitability is more…
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