Ocado Group PLC (LSE:OCDO)'s prelims are expected to lead to a 'downward revision' of consensus forecasts, according to broker Peel Hunt.
The company missed both revenue and profit expectations, with revenue down by 2% compared to forecasts, and EBITDA down by 49% due to increased costs.
The complexity of the company's business model has made it difficult for analysts to update their estimates, resulting in only a small number of them doing so in recent weeks/months, the broker said in a note.
“Overall, today's results…are broadly in line with the most recently updated consensus, but substantially below the headline consensus numbers, expect them to move down,” said Peel Hunt, which rates the stock a ‘buy’ up to 1,062p.
The shares fell 7.6% to 577.2p, and in the last year are down 58%.
Of the 16 banks and brokerages logged as following Ocado, seven are positive. The consensus price target is 1,008p.