Citi believes Nuuly will be an important part of the Urban Outfitters (URBN) growth story “for many years to come.” The firm keeps a Buy rating on the shares with a $75 price target following last week’s investor event. Nuuly is already the leader in the apparel rental market, Urban management seems to have figured out how to run a very profitable rental business, “and we should all be paying more attention to this business,” the analyst tells investors in a research note. Citi says that while it has been skeptical of apparel rental in general, Urban “may have figured it out.” The firm does not believe much is priced into Urban shares for Nuuly. It thinks Nuuly will represent 40% of the company’s revenue dollar growth over the next five years.
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