Shares of Farfetch (NYSE:FTCH), a global e-commerce marketplace for the luxury fashion industry, jumped by as much as 12.8% Thursday morning after yet another analyst upgrade drove investor optimism about the company's near-term business. As of 12:09 p.m. EDT, the stock was trading 9.5% higher.
China Renaissance analyst Ella Ji upgraded Farfetch from hold to buy and boosted the firm's price target on the stock to $33 -- suggesting significant upside to its current price of roughly $21 per share. It was the second major upgrade for Farfetch this month after Deutsche Bank analyst Lloyd Walmsley raised his institution's target price from $17 to $23, asserting that it is "increasingly clear how the company will emerge stronger from the COVID-related disruptions." Walmsley also believes that the company's strong outlook and its plans to become profitable in 2021 set the stage for further gains for the stock.
While COVID-19 has devastated countless industries, Farfetch and other e-commerce retailers have benefited as consumers shifted more of their shopping online. Further, Farfetch management believes that the company plays a key role in the global luxury fashion industry, and predicts that the share of luxury goods sold online will continue to grow even after the pandemic is brought under control. As Farfetch is positioned to benefit both during and after this crisis, Ji likely won't be the last analyst moving their price target for the company higher.