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Saturday, September 30, 2023

Farfetch Limited (NYSE:FTCH) Recent Earnings Shows Major Promise

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Farfetch Limited (FTCH) shares are trading at higher $56.47 and the avg recommendation for the stock is Moderate Buy, while the current analyst price target stands at $54.00.

To add more color to this target, the company’s high over the last year is $56.79 and the low is $5.99. Over the last 52 weeks, FTCH is up 494.42% while the S&P 500 is up 17.73%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, FTCH reported a profit of $521.78 million. Farfetch Limited also saw revenues increase to $1.13 billion. In addition, FTCH has free cash flow of -$101.36 million as of 09-2020. The company’s EBITDA came in at -$927.29 million which compares well with its peers.

FTCH booked profit margins of -76.70%, its Return on Equity (ROE) is -141.00%, and its Return on Assets is -46.50%. All told, it is clear that, FTCH needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. FTCH has a short ratio of 3.79 and outstanding shares of 344.19M.

Company Outlook

FTCH has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 9.35 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -3.39. Farfetch Limited FTCH also noted assets of $2.71 billion at the end of the last quarter. Investors should also keep an eye on sector updates as FTCH has historically followed its peers on positive news.

All told, Farfetch Limited FTCH has strung together solid data and demonstrated underlying fundamentals. At its current valuation, FTCH represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Farfetch Limited FTCH is now commanding a market cap of 19.17B and a float of 224.64M. FTCH is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of FTCH stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in FTCH, either long or short, and we have not been compensated for this article.

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