The booming resale fashion market has a clear leader in ThredUp, Barclays said Tuesday.
The firm initiated coverage of the stock with an overweight rating, comparing the company's business model and market-position to the early days of Amazon.
"TDUP is a leading mass-market player in the rapidly growing apparel and accessories resale e-commerce space," the note said. "Its business model built around proprietary logistics infrastructure and razor-thin contribution profit per item reminds us of Amazon in the early days, when heavy upfront investments assured high customer service levels and retention."