7 Stock Price Predictions That Are Actually Worth Listening To

Farfetch (FTCH)

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Farfetch (NYSE:FTCH) is a British-Portuguese online luxury fashion retail platform. Demand for luxury products typically weakens significantly during a downturn.

The average price target is nearly $18, making the stock price predictions on FTCH pretty enticing.

Despite its poor value, the online retailer is an attractive takeover target. Another luxury goods firm with plenty of cash seeking growth may buy Farfetch. In November 2021, Richemont and Farfetch discussed a partnership. The discussion included Farfetch investing directly in Yoox Net-a-Porter.

In return, Yoox Net-a-Porter would leverage Farfetch’s platform. This would enable it to pivot to a hybrid 1P/3P business model.

If acquired, Richemont would need to cut Farfetch’s overhead costs. As an unprofitable firm, Farfetch will not command a premium. In the first quarter, Farfetch posted revenue growing by only 6.1% year over year to $514.8 million.

In Q1/2022, its adjusted EBITDA was negative $35.8 million. It lost 24 cents a share (non-GAAP) partly due to suspending operations in Russia. China’s lockdown as a result of the Covid-19 outbreaks also hurt its revenue.

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