Soho House resumed with an Equal Weight at Morgan Stanley

Morgan Stanley resumed coverage of Soho House with an Equal Weight rating and $5.50 price target. The company rejected a takeover bid at a “substantial premium” to current trading, so the market focus returns to fundamentals, the analyst tells investors in a research note. The firm says that while management is progressing in its pivot to profitability, Soho is not immune to consumer spending headwinds. Also, the company’s high leverage “keeps the risk-reward wide,” adds Morgan Stanley.