The information 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 Bank S.A. 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 and as such is considered to be a marketing communication.
The company is trading at 309p. The stock is down 16% since the report in July posted a profit of £7.5 million between December 2013-May 2014. Its client base rose by 10% and its sales increased by 16% over the same period. The online grocer has yet to post an annual profit and, on average, analysts are expecting a third-quarter sales growth of 14.8%. Estimates range from 11.5%-15.6%.
Analysts are bearish on the company. Out of the 13 recommendations, four are buys, three are holds and six are sell ratings.
At the end of August, Ocado was downgraded by Redburn. The finance house reduced its target price to 257p over earning concerns and the share price has yet to recover. The 100-week moving average of 304p is providing support but a move below could put 275p in sight. However, if the firm is confident of a full-year profit it may head towards 342p.