Ocado: UBS upgrades sell rating after Kroger
(CercleFinance.com) - This morning UBS upgraded its “sell” rating on the Ocado stock to "neutral" after the British online food retailer signed a big partnership deal with the US player Kroger.
UBS' 12-month target price has rocketed from 280 pence to 750 pence (x 2.7), although this remains below the share current price.
Already a partner of Casino in France and ICA in Sweden, Ocado has scaled things up, UBS recognises, signing a software and technology license agreement with the world's number 2 food retailer: the American group Kroger, to which it will supply, its OSP platform for approximately 10 billion dollars: analysts admit that they did not expect so much.
UBS says that its previous sell rating, which was based on maturity and highly competitive market conditions in the UK, therefore no longer makes sense. However, the broker underlines execution risks in the Kroger project, with it being the biggest deal ever made by Ocado.
Also note that FTSE Russell this morning announced that the Ocado share will be integrated into the FTSE 100 index from 18 June.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
UBS' 12-month target price has rocketed from 280 pence to 750 pence (x 2.7), although this remains below the share current price.
Already a partner of Casino in France and ICA in Sweden, Ocado has scaled things up, UBS recognises, signing a software and technology license agreement with the world's number 2 food retailer: the American group Kroger, to which it will supply, its OSP platform for approximately 10 billion dollars: analysts admit that they did not expect so much.
UBS says that its previous sell rating, which was based on maturity and highly competitive market conditions in the UK, therefore no longer makes sense. However, the broker underlines execution risks in the Kroger project, with it being the biggest deal ever made by Ocado.
Also note that FTSE Russell this morning announced that the Ocado share will be integrated into the FTSE 100 index from 18 June.
Copyright (c) 2018 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.