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Rent the Runway Jumps After Jefferies Upgrade

Published 03/18/2022, 01:35 PM
Updated 03/18/2022, 01:36 PM

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.

 

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