Ocado’s Q1 retail sales of £583.5m were 2.4% ahead of consensus and the management has reconfirmed the FY23 outlook. However, the bears continue to dominate (stock price down c.5%). The key concerns turn around the active customer base, the rebound in retail profitability and uncertainty on new international CFC deals. Although the stock is likely to remain under pressure in the short term, we do not see structural issues with the firm. Positive recommendation maintained.
28 Mar 2023
Decent performance in Q1; FY23 outlook confirmed
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Decent performance in Q1; FY23 outlook confirmed
Ocado Group PLC (OCDO:LON) | 349 18.5 1.5% | Mkt Cap: 2,894m
- Published:
28 Mar 2023 -
Author:
Nishant Choudhary - Pages:
Ocado’s Q1 retail sales of £583.5m were 2.4% ahead of consensus and the management has reconfirmed the FY23 outlook. However, the bears continue to dominate (stock price down c.5%). The key concerns turn around the active customer base, the rebound in retail profitability and uncertainty on new international CFC deals. Although the stock is likely to remain under pressure in the short term, we do not see structural issues with the firm. Positive recommendation maintained.