Farfetch downgraded to Neutral on limited visibility at JPMorgan

JPMorgan analyst Doug Anmuth downgraded Farfetch to Neutral from Overweight with a price target of $6, down from $15. The magnitude of the Q2 softness, lowered 2023 outlook and limited visibility are likely to keep pressure on the shares in the near-term, the analyst tells investors in a research note. The firm is “encouraged” that Farfetch is working to deliver positive EBITDA and free cash flow despite a smaller gross merchandise base. However, the company’s “year of execution” is proving challenging given U.S. and China weakness, early Reebok partnership hiccups, NGG brand and wholesale pressures, contends JPMorgan. It hints Farfetch needs to put together multiple quarters of execution to regain credibility.