JPMorgan reiterates ‘overweight’ on Ocado, lifts price target.
JPMorgan reiterated its ‘overweight’ rating on Ocado on Wednesday and lifted the price target to 290p from 245p as it continues to view the risk/reward as "highly attractive".
Ocado Group
12 August 2026 09:14:11
Source: Sharecast
The bank noted that Ocado shares remain volatile, down 7% year-to-date versus the FTSE 100 up 9%, given the stock’s "asymmetric, event-driven profile".
JPM said share price movements continue to be driven by the binary nature of the investment case, which hinges on (1) incremental deal announcements across both customer fulfilment centres and SBA (store-based automation) solutions that validate the proposition and (2) delivery of positive underlying cash flow by year-end.
The bank said recent news flow around the signing of a large, new CFC customer, alongside a more constructive tone from chief executive Tim Steiner on its recent investor call, reinforces JPM’s view that momentum is improving and that further deal wins are achievable.
"At current levels, we see the valuation as depressed: the share price does not, in our view, even reflect the value of contracts already signed and, on our estimates, implies further site closures rather than incremental openings," it said.
The bank also said it remains positive around Ocado’s ability to outbid competitors when it comes to new deals.
Halifax is not responsible for the content and accuracy of the Markets News articles. We may not share the views of the author. Understand the risks, please remember the value of your investment can go down as well as up and you may not get back the full amount you invest. We don't provide advice so if you are in any doubt about buying and selling shares or making your own investment decisions we recommend you seek advice from a suitably qualified Financial Advisor. Past performance is not a guide to future performance.
