UPDATE: Goldman Sachs Starts Rent the Runway Inc (RENT) at Buy

November 22, 2021 12:39 AM EST
Get Alerts RENT Hot Sheet
Price: $1.37 +3.01%

Rating Summary:
    12 Buy, 6 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 10 | Down: 28 | New: 30
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(Updated - November 22, 2021 4:36 AM EST)

Goldman Sachs analyst Eric Sheridan initiates coverage on Rent the Runway Inc (NASDAQ: RENT) with a Buy rating and a price target of $25.00.

The analyst comments "We are initiating coverage of RENT with a Buy rating and a $25 12-month PT. RENT is the leader in the subscription-based effort to drive the adoption of the sharing economy theme in the apparel sector. RENT has created a two-sided discovery engine on its platform which allows consumers to find/explore a wide range of apparel choices and allows brand designers to scale their businesses while also finding a consumer cohort that helps their brands expand their audience. As the post-pandemic world normalizes (exiting ’21 and into ‘22), we see RENT as a key beneficiary of “return to work” as subscriber levels return to pre-pandemic levels and then compound growth in our forward operating estimates. In addition to growth re-acceleration, we see a mix of product acquisition strategies (due to deep brand partnerships), scale building against fixed costs and platform data advantages (in the form of customer acquisition and brand supplier insights) as driving a path to profitability in the coming years. Lastly, we see RENT as a company well positioned for an increased investor focus on ESG initiatives as the company enables the fashion luxury market to transform from a “buy” to a “share” business model."

For an analyst ratings summary and ratings history on Rent the Runway Inc click here. For more ratings news on Rent the Runway Inc click here.

Shares of Rent the Runway Inc closed at $16.20 yesterday.

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