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Farfetch Gets a Post-Earnings Boost as Analyst Gives Thumbs Up

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Shares of luxury boutique e-commerce platform provider Farfetch  (FTCH) - Get Farfetch Limited Class A 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.

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