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M&S food to order is now available through Ocado. Leaflet regarding it has come with my latest Ocado delivery. A fairly obvious move for M&S to offer it but it's something Waitrose did not offer throughout it's long relationship with Ocado.

Another distinguishing factor for Ocado retail. Party food grocery shops will usually be bigger, more profitable basket sizes for Ocado.

M&S food to order is now available through Ocado. Leaflet regarding it has come with my latest Ocado delivery. A fairly obvious move for M&S to offer it but it's something Waitrose did not offer throughout it's long relationship with Ocado. Another distinguishing factor for Ocado retail.

It's easy to think that brokers, being so informed, are bound to be right but they make basic mistakes just like the rest of us.

As an aside Berenberg never said Ocado retail UK revenue was irrelevant. They were just outlining that the Ocado Solutions side of the business is what drives the Ocado group share price long term.

I'm a hold

I clearly remember after Ocado's warehouse fire Berenberg said it was a good entry point to buy the shares. A brave call that was so true. They have been spot on throughout Ocado's evolution.

CREDIT SUISSE CUTS OCADO PRICE TARGET TO 1,319 (1,335) PENCE - 'UNDERPERFORM'

Credit Suisse have never been a believer. Berenberg on the other hand have called it correctly throughout the history of Ocado and foreseen Ocados huge share price rise.

Concerns about UK retail sales at Ocado (OCDO) are ‘overdone’, according to Berenberg.

Analyst Thomas Davies retained his ‘buy’ recommendation but lowered his target price from £25.30 to £25.25. The shares were trading at £22.51 yesterday at the time of writing.

Despite the grocery shopping platform upgrading 2020 earnings guidance in its quarterly results last week, the shares have fallen 7% due to lower-than-expected sales.

However, Davies said this ‘was driven by self-imposed supply reduction during the M&S transition rather than a demand-led slowdown’.

‘While a vaccine will result in the normalisation of demand and the launch of three new warehouses will drag on retail margins next year, ultimately Ocado retail UK represents less than 10% of the group’s valuation; it is not a long-term driver of the shares,’ he said.

With the increased interest in the Ocado smart platform and further deals expected in 2021, Davies said ‘the recent share price performance provides an attractive entry point’.

https://citywire.co.uk/wealth-manager/news/broker-tips-ocado-bandm-and-ig-group/a1439885

BERENBERG CUTS OCADO PRICE TARGET TO 2,525 (2,530) PENCE - 'BUY'

Clear indication above that Berenberg also see the small sales growth miss versus expectations re the latest Ocado retail trading statement as a very minor issue.

Yes, some consumers may be stockpiling ahead of Brexit talks end too. Ocado retail will be absolutely motoring currently. Covid rates around the world stubbornly high driving online grocery shopping increases throughout the globe.

The demand for Ocado retail product is absolutely huge. It validates the £750m MKS have invested and validates the best in class online delivery solution that Ocado solutions has developed.

This model is being replicated extremely successfully all over the world by Ocado Solutions. MKS ignored online for a very long time but in the last chance saloon they picked a winner.

Ocado have over £1.5bill in the bank. No fundraising is needed for the foreseeable future.

You are talking there about Ocados online grocery market share. Tim Steiners predictions have been regarding the overall online grocery market share of total grocery shopping. This is a very important difference. Tim wants Ocado to grow profitably as it's doing so currently. It's upped it's EBITDA guidance twice recently.

Tesco and others are growing online grocery market share but they are not doing so profitably. They throw extra staff into store pick solutions which give very little profit. If you look at the big 4 grocers share prices you'll see that the huge rise in online deliveries hasn't boosted their profits.

For Ocado it's about having the best in class online grocery solution. When you have the best, others will want it. It's not about throwing bodies at the problem to grab market share.

"We import twice what we export to Europe." is a false statement made by Neil on this board. I encourage anyone to try and factually back up that statement...

The statement is way off the boards MKS topic but there we go it is funny season. This stuff is to be expected.

Some chat below re Tim Steiners predictions for online grocery growth. Useful to remind us of what he has actually predicted. He said the below in July this year regarding online grocery as a percentage of total grocery shopping in the UK.

Steiner predicted that online demand will continue to grow and could reach as much as 30% over the next five years, “at which point we'll see a continued channel shift, which will begin to make the economics of stores quite challenging”.

Currently online grocery market share is around 13%. His prediction is looking very realistic.

Lol you still can't get names right, chilling??

Names, details, they're all irrelevant to you.

The expansion of online grocery is in its early days. It's the market 5 years from now when Ocado's strength and potential will be fulfilled. It's the reason Marks & Spencer paid £750m for half of Ocado retail. It is the future. The pandemic has speeded the transition to online grocery delivery by many years.

Certainly silly season. Laughable stuff being banded about at the moment..."We import twice what we export to Europe." lol

Share prices since start of the pandemic (13th March)

Tesco up less than 4%
Ocado up around 85%

Tesco have immensely ramped up online delivery and click and collect during this period but there is very little profit margin for them. It's the reason why grocery companies around the world turn to Ocado. They have a dependable, efficient, profitable and scalable online grocery solution.

Chilling.... lol.

"I see this SP dropping through the floor as Tesco starts announcing it’s likely intentions."

Where to start with this? It just shows a complete misunderstanding/ ignorance of what drives Ocado's share price. An unsurprising comment though as you always get lost in detail. Malicious mud slinging though excites you hence the ramblings here.

Care to explain further norrab1?

Kroger partnership looks to be progressing very well. Are you referring to any specific recent developments?

May get there goinglarge. Should be some exaggerated moves + and - over the coming weeks...

Agreed Aimigo. Would be beneficial to all if posters keep to the topic of MKS rather than spreading fake political facts. Interesting times ahead. Brexit and Covid creating some attractive opportunities in retail stocks.