Slightly after the Lord Mayor’s show, Deutchse Bank went to ‘sell’ on stock in Ocado (LON:OCDO).
The downgrade from ‘hold’ followed more than a week after the online grocer sounded the earnings alarm.
One has wonders why it took so long for the penny to finally drop.
While there are still some ‘buyers’ out there, the majority (eight out of 12 analysts polled by the Broker Forecasts site) have pinned either ‘sell’ or ‘neutral’ recommendations on the home shopping specialist.
So where do you look in the food retail sector if you are hunting a bargain stock?
Well, according to the analysts at Barclays, Tesco PLC (LON:TSCO) could be just the ticket.
The investment bank is ‘overweight’ on the stock with a price target of 215p, which is around 18% higher than the current share price.
“We expect Tesco’s first-half results to provide encouragement on the key metric of UK margin – although this may be accompanied by less good news on its pension deficit,” said analyst James Anstead.
Barclays’ positive stance isn’t universally shared in the Square Mile – and of course Tesco is still recovering from its own problems.
Broker Forecasts records five ‘buyers’ of the stock out of a total 15.