Shares in Ocado (LON:OCDO) have lost ground in London in today’s session, as analysts at Barclays lowered their stance on the online grocer. The move comes after the online grocer recently updated investors on its performance, reporting that it had made a loss in the first half of its financial year, while reassuring investors that it still expects to deliver a rise in Retail revenue this year.
As of 14:29 BST, Ocado’s share price had given up 2.29 percent to 1,067.00p, underperforming the broader UK market, with the benchmark FTSE 100 index currently standing 1.06 percent higher at 7,745.17 points. The group’s shares have added nearly 250 percent to their value over the past year, as compared with about a 2.9-percent gain in the Footsie.
Barclays trims stance on Ocado
Barclays lowered its rating on Ocado from ‘equal weight’ to ‘underweight’ today, while hiking its price target on the shares by 230 percent to 875p from 265p, still implying around 20-percent downside from the group’s current share price.
“We expect newsflow to remain a very important driver of sentiment and the share price. On the positive side, we would be surprised if Ocado did not sign further OSP [Ocado Smart Platform] deals in the coming months,” the analysts said, as quoted by Proactive Investors, adding, however, that they struggled “to foresee further deals approaching anywhere like the magnitude of the Kroger deal”.
Other analysts on online grocer
The 15 analysts offering 12-month price targets for Ocado for the Financial Times have a median target of 875.00p on the shares, with a high estimate of 1,700.00p and a low estimate of 286.00p. As of August 6, the consensus forecast amongst 18 polled investment analysts covering the blue-chip group advises investors to hold their position in the company.