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Ocado share price rises ahead of quarterly trading statement

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Shares in Ocado (LON:OCDO) have climbed higher in London this morning, ahead of the online grocer’s third-quarter update tomorrow. The results will come after the blue-chip group revealed this summer that it had made a loss before tax of £9 million in the first half of its financial year, as compared with a £7.7-million profit in the prior-year period.

As of 09:43 BST, Ocado’s share price had added 1.03 percent to 924.20p, outperforming the benchmark FTSE 100 index which currently stands 0.11 percent higher at 7,312.30 points. The group’s shares have added more than 208 percent to their value over the past year, resulting in the company’s promotion to the Footsie earlier this year.

Ocado to post Q3 results

Ocado is scheduled to update the market on its third-quarter performance tomorrow and The Telegraph reports that AJ Bell’s Russ Mould expects investors to look for “a progress report on the relationship with Morrisons and updates on the international licensing deals, especially in France, where Groupe Casino and Ocado have begun work on the first customer fulfilment centre”.

Chris Beauchamp at IG has also weighed in on the online grocer ahead of the results, commenting in a note that Ocado is a “firm of two halves – the UK retail division may see more growth, but it will require further extensive investment”. While IG sees a further expansion of the solutions business, “some of the optimism surrounding the shares may diminish” with margins remaining tight and net debt continuing to rise.

Analyst ratings update

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 September 14, the consensus forecast amongst 18 polled investment analysts covering the online grocer advises investors to hold their position in the company. 

As of 09:56 BST, Monday, 17 September, Ocado Group PLC share price is 923.20p.

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