Are Ocado Shares Due a Revival?14 Jan 2025 11:24
Are Ocado shares due a revival?
Mark Crouch, market analyst at eToro, said: 'After what has been a miserable few years for shareholders, more will be needed to recapture the dizzy heights of 2020, as the cold hard truth is that despite all the prospects and potential, Ocado has yet to deliver consistent profitability.
While profitability could set in quickly, there are growing murmurs that perhaps Marks & Spencer—who have a business partnership with Ocado and have demonstrated an astonishing turnaround over the last two years—should have more control to increase those odds. If Ocado's shares don't start performing soon, shareholders may begin calling for it as well.'
Chris Beckett, head of equity research at Quilter Cheviot, added that a 'meaningful uplift' in Ocado shares will require the group to secure more international orders for its warehouse and logistics technology. He said: 'These partnerships, which form the backbone of its global expansion strategy, are essential for diversifying revenue streams and demonstrating scalability. Success on this front could act as a catalyst for re-rating its valuation in the market. At the same time, capacity constraints during peak periods, such as Christmas, underline the need for further investment in infrastructure over time, potentially in the form of new warehouses, to meet growing demand and sustain its growth trajectory.' End