Ocado Group's consensus analyst price target saw only a marginal increase to £3.24, as ongoing operational challenges, muted order growth, and concerns over profitability and scalability continue to weigh on sentiment.
Analyst Commentary
- Bearish analysts cite ongoing operational challenges and a lack of near-term profitability as key factors driving lower price targets.
- Increased competition in the online grocery space continues to pressure Ocado Group's growth outlook.
- Concerns persist regarding the scalability and margin profile of the company's international solutions business.
- Recent financial results have failed to demonstrate significant improvement in cash flow or earnings trajectory.
- Rising costs and muted order growth weigh on investor confidence and valuation multiples.
What's in the News
- Ocado Group and Bon Preu Group have expanded their partnership to build a Customer Fulfilment Centre in Parets del Valles, serving Barcelona.
- The new centre will leverage Ocado's robotic automation for greater range, freshness, order accuracy, and cost efficiencies.
- Bon Preu, Ocado's first international partner, has significantly grown its online grocery market share in Barcelona using Ocado's technology.
- Bon Preu's online business is now the highest-rated online grocery service in Spain, according to the Spanish consumer organization OCU.
- The new fulfilment centre will process Bon Preu's high online volumes with Ocado's advanced Re:Imagined fulfilment technologies.
Valuation Changes
Summary of Valuation Changes for Ocado Group
- The Consensus Analyst Price Target remained effectively unchanged, moving only marginally from £3.20 to £3.24.
- The Discount Rate for Ocado Group has risen slightly from 7.92% to 8.10%.
- The Future P/E for Ocado Group remained effectively unchanged, moving only marginally from 91.21x to 91.12x.
Disclaimer
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