Ocado share price: Investors eye interims next week

Ocado share price: Investors eye interims next week

Online grocer Ocado (LON:OCDO) is scheduled to update investors on its interim performance next week. The results will come after the latest figures at Kantar Worldpanel showed that the company was the UK‘s fastest growing supermarket, with sales growth of 11.3 percent comfortably ahead of the overall e-commerce market at six percent in the 12 weeks to June 16.

Ocado’s share price has been little changed in London in today’s session, having inched 0.12 percent lower to 1,228.50p as of 14:42 BST. The stock is marginally outperforming the broader UK market, with the benchmark FTSE 100 index currently standing 0.52 percent higher at 7,564.26 points. The group’s shares have added about 20 percent to their value over the past year, as compared with about a 0.4-percent fall in the Footsie.

Ocado results preview

Ocado is scheduled to update investors on its half-year performance on Tuesday and IG reports that according to Bloomberg estimates, earnings per share are expected to have fallen 14.2 percent to  -9.8p, while revenue is forecast to have climbed 11.6 percent to £1.76 billion. Pre-tax losses are forecast to be £37.5 million for the period.

“Ocado’s transition from just an online supermarket to a provider of technology to similar firms around the world is complete, and the share price has responded with enthusiasm,” IG’s chief market analyst Chris Beauchamp commented in a note this week, adding that, however, the company  is not expected to see growth in earnings until 2022 at the earliest, according to estimates.

Analyst ratings update

The 13 analysts offering 12-month targets for the Ocado share price for the Financial Times have a median target of 1,000.00p, with a high estimate of 1,700.00p and a low estimate of 600.00p. As of July 3, the consensus forecast amongst 16 polled investment analysts covering the online grocer advises investors to hold their position in the company.

Citi lifted its target on the Ocado share price last month, saying that the company leads in a global online grocery market experiencing secular and structural growth.