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Goldman Sachs cuts Ocado price target to 400 (680) pence - 'neutral'

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Morgan Stanley cuts Ocado price target to 215 (345) pence - 'underweight'

There have been so many red flags on this share over the last few years. Key one was Kroger halting commissioning new CFCs. That pause has been ongoing for over a year now and speaks volumes. Kroger closing spokes. Over capacity issues at Ocado retail. Delay in the Coles CFC build. Lack of new contracts being signed and now the Sobeys pause in commissioning more Ocado tech even though they have built the exterior of their latest warehouse.

All these issues have signposted the way for me to short this share heavily. Still feel there's more downside to come.

"How low is this going to go?" - A lot lower. Plenty of ongoing issues at Ocado. Shorts vindicated once more.

Doubt it. Further falls to come.

Shorts increasing as further cracks appear in demand for Ocados tech. It's the continuation of a trend that's been ongoing for more than a year. The trend will play out further imo. More falls to come.

Kroger results "Were out today. They said delivery sales up by 17% led by CFCs."

Kroger own 5% of Ocado group through their direct shareholding. Of course they are going to talk favourably about Ocado. What to look for is their actions as they speak far louder than corporate words. They have paused commissioning new Ocado CFCs for over a year and have closed several Ocado spokes recently.

Again today the attraction of Ocados tech to other prospective international grocer partners is hit by an existing partner pausing expansion.

Lack of new partners and existing partners cutting back creates huge issues for Ocado as their tech development costs grow and their existing cash pile shrinks.

I remain short expecting further falls.

There are many other nimble automated grocery solutions available. Grocers are shunning Ocados central model of building large centralised CFCs for quicker, more cost effective solutions.

The writing has been on the wall re Ocado for so long. Even key partners have been pausing building CFCs. Today's news is little surprise. So many private investors have been ignoring the reality of Ocados tech being shunned and have been blindly hoping for huge further new contracts.

Sobeys just announced they are ending their exclusivity contract with Ocado and are putting their Ocado CFC 4 contract on hold.

Unsurprising as Kroger and Ocado retail itself has put new CFCs on hold.

Short positions validated once again.

Bayobach,

There are many competitors to Ocado. I would strongly advise you to DYOR if you are not aware of them.

The McKesson deal is not a higher value automated CFC contract. Ocado do not refer to it as such.

I look at the data daily and change my investments according to what my research shows. IMO there's room for further falls so am remaining short in order to profit further. It's as simple as that.

Short is the obvious position currently to take re Ocado. I have been short for 2 years since the shares were in the £9s. The shares have collapsed since then. I have posted my negative findings and research on this board over the last 2 years. There are many ongoing serious flaws within Ocado group.

The shares are near an all time low. I see rising costs and an ongoing lack of contracts pushing the share price further lower.

As always, DYOR.

Can't see the rationale for shorts reducing. Inflation numbers were completely as expected. Well over a year now when Ocado received a new order for an automated CFC from a new or existing partner. Competitors meanwhile are signing up other grocers and moving ahead.

Am very happy to remain short Ocado shares.

Added to my short this morning. Further to fall imo.

Kieran,

Possible takeover - No.

Listing on the NASDAQ - unlikely to happen. Even if it did the focus would still be on Ocados business performance. If still no new contracts are signed then the share would continue its slide.

"Ocado still maintain that they’re predominantly a technology based company and they also started partnering with Kruger (some what) in the latter end of 2023."

Kroger have been in partnership with Ocado since 2018.

Always check yourself info you read on this board..

Kieran,

The core of the issue re Ocado is that they simply are not attracting new clients or new CFC orders from existing clients. Competitors are signing up partners whilst Ocado hasn't taken an order for a new automated CFC in over a year.

Will Ocado recover? IMO - no. Other competitors will succeed. Ongoing high development costs will eat into Ocados finances.

As to when I will close my short. I see no reason to close it currently. I've no specific price in mind currently. Whilst my research is outlining flaws within Ocado then I'm happy to continue to short the shares

There have been some bubbles recently but we're back on the downwards trend now. If no new automated CFC contracts are signed this share will continue to move lower.

More profit ahead for the shorts imo.

Err, because the share price is going to go even lower obvs.

The UK market is recognizing that Ocado Solutions has not signed an automated CFC contract in over a year. More share price weakness to come imo