ANALYST VIEWS: HOW DO YOU RATE OCADO’S CHANCES NOW THE COMPANY HAS FLOATED?
CLIVE BLACK | SHORE CAPITAL
“We believe that a revised 180p issue price is still far too high for Ocado at this juncture, which has been reflected by the market. To our minds the reputation of the company and the stock can only be tarnished by recent events, which is a shame for all concerned. We still mark the Ocado stock a ‘sell’”
AMISHA CHOHAN | HB MARKETS
“Uptake from retail investors looks likely to be weak, with one article suggesting the company will raise only £10m (or much lower than) the anticipated £50m. Even at the revised valuation, the company is still overvalued and expensive. We would not be surprised to see hedge funds shorting the stock.”
MALCOLM PINKERTON | VERDICT RESEARCH
“The slump in share price is no surprise given that Ocado is yet to make a profit. Other contributing factors are the underlying frailties of the business model, such as its reliance on one supplier, mounting competitive threats and the financially unviable cost base. Even at this much lower price, it is a risky investment.”