Stock Market News
Goldman Sachs downgrades Ocado to 'neutral' after outperformance
Goldman Sachs downgraded its stance on Ocado to 'neutral' and removed the stock from its Conviction List following "material" outperformance.
GS noted the share price has risen around 135% since Ocado announced its agreements with France's Casino last November and Canadian food retailer Sobeys in January to provide them with its end-to-end grocery solution, Ocado Smart Platform.
Since being added to the Conviction List in May 2014, the stock is up 79% versus the FTSE World Europe up 20%, the bank said. Since being added to the buy list in October 2013, the stock is up 34% versus the FTSE World Europe up 26, with no upside remaining to Goldman's unchanged 540p 12-month price target.
"While we believe there is a material opportunity for Ocado in the online grocery space, our target price already includes seven further OSP deals to be signed over the next 10 years of a similar size to those two.
"Thus, over the next 12 months, we see material upside only through the announcement of an agreement with a major grocer that could demand far more OSP capacity than we forecast, or a takeover bid - neither of which we have visibility on."
Goldman said its price target assumes UK retail revenues increase from £1.3bn in 2017 to £7bn in 2030.
At 1250 GMT, the shares were down 1.6% to 559.40p.
GS noted the share price has risen around 135% since Ocado announced its agreements with France's Casino last November and Canadian food retailer Sobeys in January to provide them with its end-to-end grocery solution, Ocado Smart Platform.
Since being added to the Conviction List in May 2014, the stock is up 79% versus the FTSE World Europe up 20%, the bank said. Since being added to the buy list in October 2013, the stock is up 34% versus the FTSE World Europe up 26, with no upside remaining to Goldman's unchanged 540p 12-month price target.
"While we believe there is a material opportunity for Ocado in the online grocery space, our target price already includes seven further OSP deals to be signed over the next 10 years of a similar size to those two.
"Thus, over the next 12 months, we see material upside only through the announcement of an agreement with a major grocer that could demand far more OSP capacity than we forecast, or a takeover bid - neither of which we have visibility on."
Goldman said its price target assumes UK retail revenues increase from £1.3bn in 2017 to £7bn in 2030.
At 1250 GMT, the shares were down 1.6% to 559.40p.
Related share prices |
---|
Ocado Group (OCDO) share price |
Stock News headlines are gathered from financial news sources around the web. Views and opinions on each item are from their respective authors and website. They are not opinions of LiveCharts.co.uk
Get a free widget for your website with our latest headlines.
You can now add our live prices and new headlines to your website.The news widget features quotes for Oil prices, spot Gold price and Indices plus a choice of news channel for healines.
Top Shares pages
- Share price quotes
- Share charts
- Share watch list
- Company Results Calendar
- Top Large UK Shares
- UK Market Sectors
- Stock market news
- Company news
- Share tips
- A-Z company search
More share features
POPULAR Share Prices
- Royal Mail share price
- Lloyds share price
- HSBC share price
- Barclays share price
- Prudential share price
- Santander share price
- NEXT share price
- Diageo share price
- BP share price
- Vodafone share price
- British Airways
- Centrica share price
- Tesco share price
- Taylor Wimpey Share Price
- National Grid
- GKP Share Price
- Marks and Spencer
- Rolls Royce
- Rio Tinto
- THG Share Price
- Aviva Share Price
- Boil Share price
- Easyjet Share Price
- Genedrive Share Price
- SSE Share Price
- IAG Share Price
- Boohoo share price
- HE1 share price
- AVCT share price
- BOOM share price