Farfetch (NYSE:FTCH) stock is catching the eyes of traders on Friday after Bank of America praised a new partnership for the company.
Let’s jump into that latest news below!
- Richemont (OTCMKTS:CFRSF) is at the center of the deal with the company back-peddling on plans to set up its own e-commerce platform.
- Instead, it’s signed a deal with Farfetch that will have it taking over control of Yoox Net-A-Porter.
- Recent reports claim that the deal is due to pressure from activist investor Dan Loeb.
- However, founder and chairman Johann Rupert says this isn’t the case.
- Instead, he claims the company has been signaling this for a year now, reports Bloomberg.
- That news is what has Bank of America praising FTCH today.
Geoffroy de Mendez, a Bank of America analyst, said the following about the partnership in a note obtained by Seeking Alpha.
“The planned deal confirms Farfetch is not only the leading platform in online luxury, but also the enabler of the shift to online in the luxury industry – and could pave the way for more contracts with other luxury groups.”
It’s also worth pointing out that Bank of America has a bullish stance on FTCH stock. It currently has a buy rating and price target of $75 share for the company. For comparison, the consensus among analysts is a buy rating with a price target of $60.33.
Today’s news also has FTCH stock experiencing heavy trading. That has some 10 million shares of the stock changing hands as of this writing. To put that in perspective, the company’s daily average trading volume is nearly 4 million shares.
FTCH stock was up 19.1% as of Friday afternoon.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.