Ocado set to deliver a full-year profit

Ocado Group will announce its third-quarter profit figures on Thursday 11 September, and traders want to know if it is on track to post its first full-year profit.

Ocado Group logo
Source: Bloomberg

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.

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