Shares of Ocado Group PLC (LON: OCDO) gapped 2% lower today in London after Barclays’ analysts downgraded the stock to “underweight”.
The bank’s analysts are questioning whether the recent surge in share price is justified from the business perspective. Accordingly, the market cap of £16 billion was “excessively generous” as it doesn’t correspond to Ocado’s market share.
Still, Barclays’ analysts raised Ocado’s stock target price to 1,600p from 1,200p. This is a discount of over 28% compared to last week’s closing price of 2240p.
Ready to put what you’ve learned into practice?
Try IG’s platform with £10,000 in virtual funds and practise trading
without putting your own money at risk.
Try IG with a demo account →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Learn the markets with IG Academy
Build your knowledge with IG Academy educational content, then use a
demo account to practise what you’ve learned on the IG platform.
Explore IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
See how trading works before risking real money
IG’s demo gives you access to thousands of markets and £10,000 in
virtual funds, so you can explore the platform and test your ideas first.
Open an IG demo →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Turn trading theory into practical experience
Learn with IG Academy, explore charts and market tools, and practise
strategies in a simulated trading environment before going live.
Start practising with IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
Ready to take your learning further?
IG combines market education, analysis and an established trading platform,
giving you the tools to keep learning as you develop your trading skills.
Discover IG →
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading spread bets and CFDs with this provider.
The bank’s assessment of Ocado is opposite of Peel Hunt, who raised the stock price target to 2400p last week.
The recent surge in price saw Ocado stock hit an all-time high on Friday. Shares are trading 87.4% higher since the beginning of the year.
