What happened

Shares of luxury-apparel retailer Farfetch Limited (FTCH -28.57%) popped on Wednesday after getting called out as a "top pick" by Wall Street. Farfetch stock finished the session up 9.7%.

So what

Wells Fargo analyst Ike Boruchow is calling Farfetch stock a top pick, according to The Fly. And according to TipRanks, Boruchow is giving Farfetch a price target of $25 per share -- an incredible 197% higher than where it closed trading today.

Boruchow is reportedly bullish on Farfetch stock because of its platform solutions. For those unaware, Farfetch generates revenue in a variety of ways, including providing an e-commerce marketplace for small fashion companies and even owning its own physical retail locations. However, it's also started to offer technology to brands to build their own online operations with its platform solutions.

In short, Boruchow believes that its platform-solutions segment provides Farfetch stock with extreme upside, something the market hasn't caught on to. That's why this luxury stock was up today.

Now what

Farfetch stock is down around 90% from its all-time high, which further highlights the contrarian call made by Boruchow today. To the analyst's point, Italian fashion company YNAP joined Farfetch's platform solutions in the second quarter of 2022 -- an encouraging sign for the product's adoption.

However, investors should keep in mind that YNAP has incentive to adopt this product because it's acquired an ownership stake in Farfetch as part of the deal. In other words, YNAP's adoption of Farfetch's platform solutions may not necessarily be a good indicator for the merits of the product or its long-term potential. 

Either way, it's something to watch when Farfetch reports financial results. Third-quarter results are expected in late November.