Farfetch Soared 30% After EPS Beat, Strong Guidance
Tiger Newspress2022-02-25
Farfetch soared 30% in early trading on Friday after the company posted a smaller-than-anticipated Q4 loss.
The online luxury player's guidance for FY22 gross merchandise value and profitability also came in higher than expected.
"Notably, FTCH's ability to pass through higher shipping/cost inflation to consumers and its brand/boutique partners illustrates its value proposition in the luxury ecosystem," updated Morgan Stanley analyst Lauren Schenk on the report.
Schenk said that FTCH remains in the early innings of what Morgan Stanley believe is a winner-take most marketplace model and disruptive tech enabler for the luxury industry.
Morgan Stanley kept an Overweight rating on FTCH and price target of $67.
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