Update shared on20 Sep 2025
Fair value Decreased 3.11%Ocado Group’s fair value has been revised downward to £3.14, reflecting analyst concerns over sustained cash burn, slower-than-expected international deal flow, rising competition, delayed profitability, and continued weakness in UK retail.
Analyst Commentary
- Bearish analysts are concerned about persistent cash burn and negative free cash flow, impacting Ocado's ability to self-fund growth.
- Lower-than-expected progress in securing new international technology deals clouds the outlook for Ocado’s Solutions business.
- Increased competition in the online grocery and automation sectors puts pressure on both revenue growth and margins.
- Profitability timelines have been pushed further out, with delayed break-even expectations.
- Weakness in the UK core retail segment and general skepticism about near-term demand recovery drive a cautious outlook.
Valuation Changes
Summary of Valuation Changes for Ocado Group
- The Consensus Analyst Price Target has fallen slightly from £3.24 to £3.14.
- The Discount Rate for Ocado Group has risen from 8.10% to 8.63%.
- The Future P/E for Ocado Group has fallen from 91.12x to 85.39x.
Disclaimer
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