Ocado retail’s Q3 trading performance was below our expectations. The fire incident at Erith CFC (in mid-July 2021) was the key reason behind the dent in the top line. We see this as a one-off and the health of the retail business remains robust in our opinion. However, any more such accidents are likely to raise serious questions on the safety / reliability of Ocado’s technology. We will trim our financial estimates slightly but maintain our cautious stance on the stock’s valuation.
15 Sep 2021
A weak show in Q3
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A weak show in Q3
Ocado Group PLC (OCDO:LON) | 454 -51.8 (-2.4%) | Mkt Cap: 3,764m
- Published:
15 Sep 2021 -
Author:
Nishant Choudhary -
Pages:
3
Ocado retail’s Q3 trading performance was below our expectations. The fire incident at Erith CFC (in mid-July 2021) was the key reason behind the dent in the top line. We see this as a one-off and the health of the retail business remains robust in our opinion. However, any more such accidents are likely to raise serious questions on the safety / reliability of Ocado’s technology. We will trim our financial estimates slightly but maintain our cautious stance on the stock’s valuation.