Farfetch downgraded to Equal Weight from Overweight at Morgan Stanley

Morgan Stanley downgraded Farfetch to Equal Weight from Overweight with a price target of $5, down from $20. The analyst continues to have confidence in Farfetchs’ long-term opportunity and sees a “positively skewed” risk/reward profile. However, high volatility, a wider range of potential outcomes, and a limited catalyst path make it difficult to be Overweight the stock in the medium-term, the analyst tells investors in a research note. This is the second year in a row Farfetch has meaningfully missed its initial full year financial outlook and the company is experiencing some onboarding challenges with the Reebok partnership, contends Morgan Stanley. It says Farfetch is now a “show-me story.”