O’S stock fell another 3.5p yesterday to 123.5p, despite its announcement this week that it has begun work on its new warehouse in Warwickshire.
It is now trading 46 per cent below the mid-point of its initial IPO price range.
But yesterday another analyst released a note warning the stock could still have a long way to fall before it resembles a sound investment.
Collins Stewart’s Gary McCarthy, said buying the shares at their current price is a “nO CAn DO”.
He said the target price should lie between his initial valuation of 122p and a lowly 90p, pointing to his estimates the firm will have to hit figures that even rivals including Tesco and WM Morrison have been unable to achieve.
On Tuesday Ocado said it will start work on a £210m new warehouse to fuel its expansion plans.