Ocado Group PLC (LSE:OCDO) has been on the back foot for much of the past twelve months but Deutsche Bank sees next week’s interims (Tuesday, July 16) as potentially offering some respite.
“We expect Ocado Retail to report continued positive strong revenue growth, building on the momentum it has seen since the back half of last year,” said analyst Tintin Stormont.
Ocado Logistics should be steady, Stormont adds, and Ocado Tech Solutions to have made in-line progress with the rollout of modules to its partners.
“We forecast total revenues of £1.48bn (+8% yoy) and group adj. EBITDA of £43m (margin of 2.9%).
“Similar to FY'23, we expect all divisions to report positive adj. EBITDA.”
Deutsche Bank has a target of 660p and a buy rating, but its optimism contrasts with Morgan Stanley (NYSE:MS), which recently cut its price target to 215p from 345p.
The US bank said the downgrade was based on Sobeys, the Canadian supermarket chain, axing its partnership with the firm, leading to the broker fearing it could erode the development and launch of other projects.
Shares in Ocado today were flat at 378.6p.