Shares in Ocado (LON:OCDO) have climbed higher in today’s session as Barclays lifted its stance on the online grocer. Proactive Investors quoted the analysts as saying that the group’s valuation had become more ‘reasonable’.
As of 13:21 BST, Ocado’s share price had added 1.05 percent to 786.40p, outperforming the broader UK market, with the benchmark FTSE 100 index having slipped marginally into the red and currently standing 0.09 percent lower at 7,231.04 points. The group’s shares have added more than 165 percent to their value over the past year, as compared with about a four-percent dip in the Footsie.
Barclays lifts rating on Ocado
Barclays lifted its rating on Ocado from ‘underweight’ to ‘equal weight’ today, having downgraded the company in August following a surge in the share price. Proactive Investors quoted the analysts as saying that the downgrade was because they believed that the stock price ‘discounted excessively optimistic scenarios,’ while the recent drop had brought it back in line with their price target of 875p.
The broker further pointed to ‘very little newsflow’ since its valuation that would impact their forecasts.
Other analysts on online grocer
The 14 analysts offering 12-month price targets for Ocado for the Financial Times have a median target of 947.50p on the shares, with a high estimate of 1,700.00p and a low estimate of 460.00p. As of October 9, the consensus forecast amongst 18 polled investment analysts covering the blue-chip group has it that the company will outperform the market.
The online grocer updated investors on its third-quarter performance last month, revealing that its retail revenue had grown 11.5 percent to £348.6 million in the 13 weeks to September 2, in line with the group’s guidance for the year.