CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure. CFDs are a leveraged product and can result in losses that exceed deposits. Please ensure you fully understand how CFDs work and what their risks are, and take care to manage your exposure.

How high can the Ocado share price possibly go?

Ocado shares have rallied 42% since mid-March after the stock saw revenue growth double amid panic buying due to the coronavirus pandemic.

Ocado shares have rallied 42% since mid-March after the company saw revenue growth double amid panic buying due to the coronavirus pandemic.

In its first quarter (Q1), the online retailer saw revenue growth double, with consumers opting to stockpile food in reaction to the Covid-19 outbreak and subsequent nationwide lockdown.

‘The impact of higher basket values and order demand, amid growing public concern over the coronavirus, was limited in the quarter, although this has since picked up significantly and growth in the second quarter is so far double that of the first quarter,’ the company said in a statement.

The company said that Q1 revenue increased by 10.3% to £441.2m, with sales spiking so much that the retailer was forced to temporarily shut down its online store and stop taking new customer registrations due to ‘unprecedent strain’ on the business.

Ocado did also mention that it expects ‘the impact of forward buying, however, to unwind at some point’.

Ocado is trading at £15.44 a share as of 13:35 (GMT) on Wednesday.

Bernstein reiterates ‘outperform’ rating for Ocado

Analysts at Bernstein remain optimistic about Ocado’s share price trajectory, with the US-based brokerage reiterating its ‘outperform’ rating for the stock in March and upgrading its target price to £17 a share.

Based on Ocado trading at £15.44 a share, analysts at Bernstein believe the stock has a potential upside of 10.1%.

Analysts at JP Morgan also upgraded their rating for the stock from ‘neutral’ to ‘underweight’. But despite improving their price target for Ocado to £14 a share, it implies the share price will fall in value by 9.3%.

How to trade retail stocks with IG

Looking to trade Ocado and other retail stocks? Open a live or demo account with IG and buy (long) or sell (short) the stock using derivatives like CFDs in a few easy steps:

  • Create an IG Trading Account or log in to your existing account

  • Enter ‘OCADO’ in the search bar and select it

  • Choose your position size

  • Click on ‘buy’ or ‘sell’ in the deal ticket

  • Confirm the trade


This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.

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