ANALYST VIEWS: CAN OCADO LIVE UP TO ITS EXPANSION PLANS?
CLIVE BLACK | SHORE CAPITAL
In its half-year update Ocado disappointed the market. With a very challenging consumer economic environment and Waitrose’s challenge to come, we believe there are few tailwinds to support Ocado’s momentum. Hence, unsurprisingly with downgrades, we remain cautious on Ocado stock.
ANNA SMEE | HUNDRED
The fundamental question mark above Ocado is that it has failed to lay out a clear long-term growth strategy. Online shopping is now widespread but so, unfortunately, are the major food retailers that offer it, not least Waitrose, which could prove a major threat in core markets.
NICK BUBB | ARDEN
The interims are in line, with EBITDA up from £8m to £14.3m on the back of 20 per cent sales growth. Fears were raised by the weak AGM update on 11 May. It is good to see a product tie-up with Carrefour, but Ocado’s relationship with Waitrose remains as complicated as ever.