Ocado share price jumps as group reports ‘good finish’ to year

Shares in Ocado (LON:OCDO) have jumped in London this morning as the online grocer posted a trading update, saying that it was seeing a good finish to the year.

The results come after the company recently inked a deal with Kroger which will see the US supermarket order 20 warehouses over three years. 

As of 08:36 GMT, Ocado’s share price had added 1.41 percent to 804.80p, outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.06 percent higher at 6,884.39 points.

The group’s shares have soared more than 133 percent over the past year, as compared with about an eight-percent loss in the Footsie.

‘Good finish’ to year

Ocado posted a fourth-quarter trading statement this morning, reporting a good finish to the year, with its retail revenue having climbed 12 percent to £390.7 million in the 13 weeks to December 2, in line with the group’s guidance for the year.

The online grocer further saw a 13.1-percent rise in average orders per week to 320. The average order size, however, inched one percent lower to £104.91.

Tim Steiner, Ocado’s chief executive officer, commented in the statement.

Analysts on Ocado

The 16 analysts offering 12-month price targets for Ocado for the Financial Times have a median target of 903.00p on the shares, with a high estimate of 1,700.00p and a low estimate of 460.00p.

As of December 8, the consensus forecast amongst 18 polled investment analysts covering the blue-chip group has it that the company will outperform the market.