Whilst we recognise that we may have a reputation for perceiving Ocado from a position of caution, these are poor results with a far from compelling outlook statement. Further downgrades could be down the line, albeit we will take the luxury of waiting for Q3 before we dust off our well-used red pen.
ANDREW WADE NUMIS
While we still model a continued reacceleration, we cautiously edge back our H2 sales growth expectation from 17.6 to 15.8 per cent... Despite the small downgrades, Ocado is now clearly moving in the right direction again and, confident in the business model and progress, we remain positive.
PHILIP DORGAN PANMURE GORDON
Ocado’s results are better than we thought, although the underlying number is in line and there is no sign of operational gearing. Also, it looks as if third quarter trading is below expectations and consensus sales growth for the second half is too high. We remain Sellers with a target price of 50p.