Close

UPDATE: Morgan Stanley Initiates Coverage of Rent the Runway Inc (RENT) at Overweight with MDD Growth and a Unique Competitive Moat

November 22, 2021 1:35 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
Join SI Premium – FREE
(Updated - November 22, 2021 8:36 AM EST)

Morgan Stanley analyst Lauren Schenk initiates coverage on Rent the Runway Inc (NASDAQ: RENT) with a Overweight rating and a price target of $28.00 noting that the fashion rental space as a winner-take-most/all
market. RENT is building a deep competitive moat through its broad inventory assortment, strong brand relationships, complex reverse logistics network, and unique inventory models which combined with a small number of subs (~100k today) offers the long term ability for dramatic growth.

The analyst commented "For brands, RENT delivers 3 key benefits: 1) RENT provides brands differentiated, and low to no cost, customer acquisition. By partnering with Rent the Runway, brands effectively get paid to introduce new, younger consumers to their brands. ~80% of RENT subscribers have purchased an item from a brand they found on RENT. 2) RENT's unique real-time dataset helps brands better understand how their items perform in the real world - data that is extremely difficult to collect from wholesale or retail stores. RENT provides brands with fit, occasion, usage, quality, etc. data which can help brands increase the sell through of items and, therefore, performance across all distribution channels. 3) RENT enables brands to launch/test new categories. Due to the high quality, real-time data RENT provides, it is the ideal partner for brands to expand their assortments with as they can utilize RENT to test and learn, creating a better product before launching across more channels."

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.


You May Also Be Interested In





Related Categories

Analyst Comments, Hot New Coverage, New Coverage

Related Entities

Morgan Stanley, Definitive Agreement