Ocado Group PLC (LSE:OCDO) has faced a hefty share price target cut by Deutsche Bank after disappointing with thin guidance in results late last month.
Deutsche took its price target from 660p to 370p in a note, as forecasts were dashed for the coming year.
Adjusted pre-tax earnings should sit at £241 million, Deutsche said, against £153 million in 2024.
Ocado had guided for revenue growth of 10% in its Tech Solutions wing and 10% from its retail joint venture with M&S, alongside underlying margins of around 4%.
Full control of the joint venture was set to be handed over to partner M&S, Ocado also signalled at the time.
“While this is 5% below our previous forecast, our underlying free cash flow is nearly £100 million better given the reduction in capex and tech/support costs,” Deutsche noted.
Shares were up 1.8% at 252p on Thursday.