Analysts See 180% Upside for Rent the Runway: Should You Buy?

Rent the Runway (NASDAQ: RENT) is a micro-cap stock whose price target was recently updated by Jefferies. This signals that the name could have nearly triple-bagger upside. According to MT Newswires, analysts at Jefferies updated their price target for the firm on Sept. 6. That target now sits at $26 per share, while the company trades at $9.31 per share. This implies that the analyst believes shares could rise 180% from their current level.

To understand this lofty target, I'll examine the consumer discretionary firm's operations, competitors, and financial situation.

Rent the Runway Aims to Offer Customers an "Unlimited Closet"

Rent the Runway (RTR) is a fashion company with a unique business model. The company is a platform where customers can rent pieces of clothing. It specifically caters to women, allowing them to rent high-priced designer garments. This allows its customers to access these garments for a much lower price than having to buy them.

This opens up the world of designer clothing to many more people, allowing many users to split the cost of those garments. RTR points out that its average customer wears clothes worth 25 times more than what they pay in subscription fees for the service annually. The company aims to provide its customers with an "unlimited closet" as they can swap out their garments for other ones whenever they like. ...

Full story available on Benzinga.com