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Ocado share price: Peel Hunt reaffirms group as ‘buy’ after site visit

Peel Hunt has reaffirmed Ocado (LON:OCDO) as a ‘buy,’ following a visit to the online grocer’s customer fulfilment centre. Citywire reports that the broker is impressed by the level of cybersecurity and sheer amount of technology the group has to draw on.

Ocado’s share price rallied in the previous session, adding 5.52 percent to close at 833.40p, outperforming the broader UK market, with the benchmark FTSE 100 index gaining 30.18 points to close 0.43 percent higher at 7,059.40. The group’s shares have added more than 176 percent to their value over the past year.

Peel Hunt sees Ocado as ‘buy’

Peel Hunt reaffirmed Ocado as a ‘buy’ yesterday, with a price target of 1,700p on the shares. Citywire quoted the broker’s analyst James Lockyer as commenting that the online grocer’s level of tech was impressive, while the group’s “cybersecurity strategy is multi-layered’ and uses ethical hackers to “root out and fix any weaknesses in the system”.

The analyst further reckons that the FTSE 100 group has gone ‘beyond cloud-based analytics’ in order for the system to do more processing and decision making.

“While the external target is for 65,000 orders per week for Andover, to challenge themselves, they have an internal target of 70,000,” Lockyer concluded.

Other analysts on online grocer

The 15 analysts offering 12-month price targets for Ocado for the Financial Times have a median target of 1,020.00p on the shares, with a high estimate of 1,700.00p and a low estimate of 460.00p. As of October 16, the consensus forecast amongst 19 polled investment analysts covering the online grocer has it that the company will outperform the market.  

Earlier this month, Barclays lifted its rating on Ocado, arguing that the online grocer’s valuation had become more ‘reasonable’.

As of 07:58 BST, Wednesday, 17 October, Ocado Group PLC share price is 833.40p.

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