ContextLogic Inks Partnership Deal with PrestaShop; Shares Pop 12.7%
ContextLogic (WISH) has signed a two-year partnership deal with PrestaShop, a leading e-commerce platform. ContextLogic is an American online e-commerce platform that facilitates transactions between sellers and buyers.
Following the deal announcement, shares of the company rose 12.7% to close at $11.27 on June 14.
The partnership will enable merchants and brands on the PrestaShop platform to sell their products on the Wish marketplace. Moreover, PrestaShop merchants will be offered marketing and sales support, including special incentives.
Wish will now be granted the official “Trusted Partner” status on PrestaShop. The deal will provide its customers with even more quality merchants and brands, which is expected to further boost online sales.
ContextLogic’s Senior Business Development Manager Alan Small said, “Wish serves millions of consumers around the world by providing high-quality products at affordable prices and a personalized, entertaining shopping experience. Partnering with PrestaShop will enable us to offer our consumers even more quality merchants and brands and to provide Prestashop merchants with a global platform to transact on.” (See ContextLogic stock analysis on TipRanks)
On May 13, Credit Suisse analyst Stephen Ju reiterated a Buy rating on the stock but decreased the price target to $24 from $31. This implies 113% upside potential to current levels.
The analyst said that the better-than-expected revenue and adjusted EBITDA in Q1 were driven by higher AOVs and stronger logistics.
The rest of the Street is cautiously optimistic about the stock with a Moderate Buy consensus rating based on 4 Buys and 2 Holds. The WISH average analyst price target of $20.50 implies 81.9% upside potential from current levels. Shares have decreased 43.8% over the past six months.
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