Among the key news on UK stocks, Ocado Group (GB:OCDO) surged over 14% as of writing after the company reported strong revenue growth in 1H 2024. The company’s revenue increased to £1.5 billion, marking an increase of 12.6% over the same period last year.
Additionally, the company raised guidance for its Technology Solutions segment, targeting a mid-teens EBITDA margin, up from the earlier forecast of more than 10%. The company also expects its cash flow to reach £150 million, compared to previous guidance of £100 million.
Ocado Group is a technology-driven company recognized globally for its expertise in software and robotics platforms.
Ocado Group Sees Robust Growth
Ocado’s revenue growth was primarily driven by its Technology Solutions segment, which experienced a 22% increase. Among its other segments, Ocado Retail saw an 11% increase, and Ocado Logistics grew by 6%.
For the first half, Ocado’s adjusted EBITDA (earnings before earnings, interest, taxes, depreciation, and amortization) increased to £71.2 million from £16.6 million a year ago. Meanwhile, its pre-tax losses were reduced to £154 million versus £290 million in the first half of 2023.
Looking ahead, the company noted that the global shift to online business has picked up again after a slow period for the online grocery segment. It also highlighted that the company is well-positioned to take advantage of this opportunity.
What Is the Price Prediction for Ocado?
The first-half numbers provided some relief to investors who had been dealing with sluggish share performance. Yesterday, OCDO traded down by over 10% after Berenberg Bank and Bernstein reduced their price targets on the stock while maintaining their Sell ratings. Over the last 12 months, OCDO stock has lost over 30% of its value.
According to TipRanks’ analyst consensus, OCDO stock has received a Moderate Sell rating based on 10 recommendations from analysts. The Ocado share price forecast is 397.20p, which is nearly in line with the current price level.
