Shares of luxury boutique e-commerce platform provider Farfetch (FTCH) – Get Report surged on Friday following better-than-expected quarterly results and accolades from an analyst who see strong growth for the company’s luxury online e-commerce platform.
Shares of Farfetch jumped more than 10% Friday after the London-based company posted a 71% increase in third-quarter sales, far exceeding analysts’ forecasts.
Farfetch said its third-quarter net loss on an adjusted earnings before interest, taxes, depreciation and amortization basis narrowed to $10.3 million from $35.6 million in the period a year earlier.
Farfetch also projected digital platform gross merchandise value of $880 million to $910 million in the fourth quarter, above analysts’ estimates of $851.3 million.
The better-than-expected results coupled with last week’s $1.1 billion partnership announcement with e-commerce giant Alibaba (BABA) – Get Report and Cartier brand owner Richemont was enough to prompt KeyBanc analyst Edward Yruma to raise his one-year price target on Farfetch shares.
Yruma lifted his price target on Farfetch to $50 from $32 and kept his overweight rating on the shares, noting among other positives that he expects the company to continue to benefit from department stores’ pandemic-driven shift to online sales.