Farfetch price target lowered to $5.50 from $10 at BTIG

BTIG analyst Marvin Fong lowered the firm’s price target on Farfetch to $5.50 from $10 but keeps a Buy rating on the shares. The company’s Q2 results in core marketplace were “ok”, but the outlook for the second half was “weak” as Farfetch took down Group GMV guidance down by $500M and Digital Platform GMV down by about $350M, the analyst tells investors in a research note. The main culprits in the more cautious organic demand outlook are the U.S. and China, with both down low single digits in the quarter and with China experiencing a notable reversal, the firm added. Longer term, BTIG remains positive on Farfetch’s global presence, noting that its distributed model has proven to be an advantage over wholesale models while noting that the company still has multiple billion-dollar markets it can enter.