By Sam Boughedda
Investing.com -- Shares of e-commerce platform Rent the Runway Inc (NASDAQ:RENT) rose 28% Friday after Jefferies started coverage of the stock with a buy rating.
Analyst Ashley Helgans put a $13 price target on the company, which allows users to rent, subscribe, or buy designer apparel and accessories.
The analyst said Rent's lower consumer penetration and post-Covid backlog will help fiscal 2022 subscriber and top-line growth of over 40% and 50%, respectively.
Helgans added that the infrastructure creates a high barrier to entry, a factor that will help drive top-line growth for the company.
The company's shares are still well below its high of over $24, which it achieved in October last year, the day it went public.