JPMorgan Lifts PT On Farfetch As 2Q Sales Beat


JPMorgan raised Farfetch’s price target after the online luxury retailer reported 2Q revenue that topped analysts’ estimates. Shares of Farfetch jumped 8.2% on Friday.

JPMorgan analyst Doug Anmuth raised the price target on Farfetch (FTCH) to $40 (40.1% upside potential) from $18, and kept a Buy rating on the stock. Anmuth wrote in a note to investors that Farfetch has become “an increasingly important partner” to boutiques, brands and other retail partners, that had to shut down amid the COVID-19 pandemic. The analyst believes that Farfetch’s “positive results” are driven by recent key initiatives and acquisitions.

In addition, Credit Suisse analyst Stephen Ju increased the stock’s price target to $35 (23% upside potential) from $29, and reiterated a Buy rating. Ju was impressed with 2Q results and saw improving US trends in the latter half of June coupled with ongoing strength from China/APAC and Europe. As North America begins to “exert less of a drag on overall consolidated growth, the possibility remains for Farfetch to show ongoing momentum for the balance of 2020,” the analyst added.

2Q revenues rose 74% year-over-year to $365 million, surpassing Street estimates of $327 million. The company reported a 2Q loss of $0.31 per share, which is lower than analysts’ expectations of a loss of $0.37 per share. Furthermore Farfetch confirmed that the company is on track to report adjusted EBITDA profitability in 2021.

Currently, the Street has a bullish outlook on the stock. The Strong Buy analyst consensus is based on 10 Buys versus 1 Sell. The average price target of $31.65 implies upside potential of about 11% to current levels. (See FTCH stock analysis on TipRanks).

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