Farfetch climbs as SocGen upgrades to 'buy' on valuation
25/03/2022 11:47
** Shares of online luxury retailer FTCH.N jump 3% to
$15.99 premarket after Societe Generale raises the stock to
"buy" from "hold"
** Stock down ~65% since Nov. 19 when firm cut gross
merchandise value (GMV) forecast, blaming cooling demand for
high-end fashion urn:newsml:reuters.com:*:nL4N2SA2TG
** "Stock's current very low valuation offers a sufficient
margin of safety, for a company that offers solid sales/GMV
growth potential in the medium term (2022-2024)" - SocGen
** However, brokerage trims PT to $22 from $23, warning that
it will only gradually generate profit over the longer term
** Last month, FTCH gave an upbeat growth forecast including
digital platform GMV growth of 28% to 32% urn:newsml:reuters.com:*:nL4N2V03D7
** Stock set for fourth straight day of gains, if premarket
gains hold; YTD, FTCH down 54%
(Reporting by Anisha Sircar in Bengaluru)
((Anisha.Sircar@thomsonreuters.com;))