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Pin to quick picksOcado Share News (OCDO)

Share Price Information for Ocado (OCDO)

London Stock Exchange
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Share Price: 355.60
Bid: 357.00
Ask: 357.50
Change: 5.60 (1.60%)
Spread: 0.50 (0.14%)
Open: 352.00
High: 378.90
Low: 350.70
Prev. Close: 350.00
OCDO Live PriceLast checked at -

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M&S paying high price for being late to online food party, says RBC Capital

Mon, 11th Mar 2019 08:46

(Sharecast News) - RBC Capital Markets upped its price target for Ocado on Monday but cut its target for Marks & Spencer as it accounted for the joint venture announced last month.Online delivery specialist Ocado announced in February that it had agreed to sell M&S a 50% share in its UK retail business for up to £750m. M&S said at the time that it was slashing its dividend by 40% and planning a rights issue to raise up to £600m to pay for the £562.5m upfront portion of the deal.The JV will trade as Ocado.com but have access to M&S's brand, products and customer database from the switchover date of September 2020, as Ocado's current deal with Waitrose is being terminated. The M&S-branded food and beverage range will be combined with Ocado's existing range of Ocado own label and third-party branded products to offer more than 50,000 products.RBC said the JV with M&S is "additional validation of Ocado's best-in-class solution". However, this is fairly reflected in the share price. In addition, the bank said it was remaining on the side lines with its 'sector perform' rating in light of execution risk and lack of visibility on future cash flow.It lifted its price target on Ocado to 1,000p from 750p. The bank said it values the JV with M&S at 230p a share on a discounted cash flow basis. It values the company's solutions business at 220p a share, reflecting the current deals with Morrisons, Bon Preu, Casino, Sobeys, ICA and Kroger and the Ocado Retail JV.Finally, RBC said it was incorporating likely future deals in its valuation worth 520p by assuming Ocado can reach 15% global market share through it partners.The bank, which also has a 'sector perform' rating on M&S, cut that price target to 270p from 300p as it reduces its FY20-22 earnings per share forecasts by around 10%, having taken a detailed look at the JV with Ocado."While we see some strategic benefits, we think M&S has paid a high price for being late to the party in online food, and we question whether it can retain the £70m of targeted synergies given potential need for price realignment," it said.RBC also cautioned that this is the second time in 10 years that M&S has cut its dividend payout."Essentially M&S is moving from being a high yield no growth stock, to one with a more moderate yield (4%) but with some potential for EPS growth in the longer term, albeit the Ocado JV is unlikely to be material to the bottom line for several years."At 1510 GMT, M&S shares were up 0.1% to 265.60p and Ocado shares were 0.4% firmer at 1,058p.
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21 Apr 2024 16:47

Sunday newspaper round-up: IDS, Ocado, Foxtons

(Sharecast News) - Asset manager Redwheel told regulators they should reduce the UK postal service's legal obligations. The move followed a failed buyout attempt by Daniel Kretinsky for International Distributions Services, its parent company. The billionaire investor was said to be evaluating a possible improved bid. The company meanwhile has petitioned Ofcom to let it cut the number of days per week during which it must deliver second-class mail from six to two or three. That would save the company £300m and see it shrink its workforce by 1,000. According to Redwheel, as first reported by the Sunday Times, the enforced costs of its legal obligations left the company "vulnerable to corporate predators". - Guardian

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21 Apr 2024 09:51

PRESS: Ocado facing call to shift listing from London - Telegraph

(Alliance News) - Ocado PLC has faced investor pressure to consider a listing in New York, the Telegraph reported on Saturday.

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10 Apr 2024 16:52

LONDON MARKET CLOSE: New York stocks tumble as US data dashes cut hope

(Alliance News) - European stocks closed off session highs on Wednesday, while equities in New York struggled, after a robust US inflation reading which potentially pushed the first Federal Reserve rate cut of the cycle further into the future.

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10 Apr 2024 11:56

LONDON MARKET MIDDAY: European stocks get boost ahead of US inflation

(Alliance News) - Stock prices in London were higher at midday on Wednesday, despite some nerves centred around the latest US inflation rate reading, out this afternoon.

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8 Apr 2024 16:52

London close: Stocks rise at start of busy week

(Sharecast News) - London markets closed with gains on Monday as investors exercised caution ahead of key events later in the week.

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5 Apr 2024 17:31

London stocks log weekly declines on geopolitical, rate uncertainty

FTSE 100 down 0.8%, FTSE 250 off 0.7%

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5 Apr 2024 15:22

London close: Stocks finish lower as US payrolls top forecasts

(Sharecast News) - London markets closed lower on Friday amid a backdrop of heightened investor caution, following robust US job data for March, hawkish remarks from Federal Reserve officials, and escalating tensions in the Middle East.

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4 Apr 2024 17:04

UK stocks climb on boost from auto, mining stocks after upbeat data

Ocado drops as chairman to step down next year

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4 Apr 2024 15:58

London close: Stocks manage gains ahead of US payrolls report

(Sharecast News) - London markets closed higher on Thursday, driven by a robust showing from the mining sector and as investors contemplated the UK services sector's latest figures.

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4 Apr 2024 10:05

TOP NEWS: Ocado chair to step down to focus on NatWest role

(Alliance News) - Ocado Group PLC said on Thursday that its chair intends to step down next year, as "pressure" on his time will grow after taking on the position at lender NatWest Group PLC.

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4 Apr 2024 08:03

Ocado chair Haythornthwaite to step down next year

(Sharecast News) - Ocado said on Thursday that chairman Rick Haythornthwaite will be stepping down next year "due to his increasing commitment" as the recently-appointed chair of NatWest.

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4 Apr 2024 07:43

LONDON BRIEFING: Vodafone-Three deal faces deeper UK probe

(Alliance News) - London's FTSE 100 is called to open higher on Thursday, despite remarks from Federal Reserve Chair Jerome Powell failing to soothe lingering interest rate worries.

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2 Apr 2024 15:22

London close: Stocks turn red on return from Easter break

(Sharecast News) - UK stocks experienced a downturn by the end of trading on Tuesday, as investors resumed activity following the extended weekend, with initial gains reversed by the close ahead of a week marked by a number of key economic data releases.

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