Bank of America Merrill Lynch's Geoffroy de Mendez maintained a Buy rating and $31 price target.
The earlier-than-scheduled launch on JD.com means that Farfetch will be able to reap the potential rewards of the partnership earlier than anticipated, Wells Fargo’s Boruchow said in a Tuesday note.
The company will have “Level 1” access to around 3 million users who are considered “prequalified” luxury customers, the analyst said.
China represents Farfetch’s “most compelling long-term opportunity,” as the GMV potential could grow from $200 million today to an estimated $6 billion by 2025, he said.
BofA's Mendez said Farfetch will benefit from JD’s logistics network.
The JD.com launch completes Farfetch’s turnkey offering for luxury brands wishing to target mainland China, a region that is expected to drive 75% of Chinese luxury spending growth by 2025, the analyst said.
“This is an entirely new channel with a large existing customer base for Farfetch,” Mendez said, estimating GMV growth of 46% in the back half of 2019.
Farfetch shares were up 0.38% at $21.08 at the close Wednesday.
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