U.K.'s Ocado Group cut to underperform, target slashed at Credit Suisse
U.K.-based Ocado Group was cut to underperform from neutral, with its price target slashed 39% by Credit Suisse analysts on Wednesday. The online grocer and retail-technology specialist on Tuesday reported higher revenue in the third quarter of fiscal 2022, but forecast a sales drop due to inflationary pressures on consumers. A team of Credit Suisse analysts led by Victoria Petrova cut their Ocado target price to 590 pence from 960 pence. The "benefits of Ocado's advanced technologies aren't delivering consistent results in retail joint ventures," said Petrova and the team, adding that Ocado has likely "exhausted large market potential opportunities with exclusive agreements in most major developed markets." And higher costs in the grocery sector and a slowdown in online food deliveries could pose risks to existing partnerships, they said.
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