In key news on UK stocks, shares of the FTSE 100-listed Ocado Group (GB:OCDO) soared after its grocery business, Ocado Retail, reported strong numbers in its trading update for Q1 2024. Ocado Retail reported an 8.1% year-over-year increase in volumes, accompanied by a 10.6% rise in retail revenue for the 13-week period that ended on March 3, 2024. The Ocado share price is trading up by almost 7% as of writing, while MKS stock gained 2.5%.
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Ocado Group is a technology-driven company recognized globally for its expertise in software and robotics platforms. Meanwhile, Ocado Retail is a joint venture with equal ownership shared between Ocado Group and Marks and Spencer PLC (GB:MKS).
Highlights from Ocado’s Trading Update
According to Ocado Retail’s trading update, the average weekly order rose 8.4% to 414,000, compared to Q1 2023. This was driven by robust growth in active customers, which rose by 6.4% to 1.02 million by the quarter’s end. The average order value grew by 2.1%.
The ASP (average selling price) experienced a modest increase of 2.2%, which notably lagged behind the market average. This was a deliberate move by the company to lower its prices and attract customers struggling with the cost-of-living crisis.
Ocado Retail kept its full-year guidance unchanged, anticipating overall revenue growth in FY24 to be in the “mid-high single digits.” Additionally, it expects an underlying EBITDA margin of approximately 2.5%.
What is the Price Forecast for Ocado Stock?
According to TipRanks’ analyst consensus, OCDO stock has received a Moderate Sell rating. The stock has three Holds, three Sells, and one Buy recommendation from analysts. The Ocado share price forecast is 552.34p, which is about 15% above the current price level.
