1020 GMT - Ocado's investors have many reasons to be optimistic as previous concerns about the company's prospects begin to dissipate, J.P. Morgan Cazenove analysts Marcus Diebel and Carmen Graves say. The company is benefiting from a quick improvement in profit margins in both retail and solution segments, which is boosting free cash flow generation and could be used to reduce debt, they say in a note. The online grocer and retail-technology specialist should see a rise in new deals as the adoption pace of the online grocery shopping picks up, they add. JPM Cazenove upgrades the stock recommendation to overweight from neutral and price target to 400.0 pence from 340.0 pence, saying that the current price doesn't reflect Ocado's current guidance of 150 customer fulfillment modules by 2027. Shares are up more than 14% at 284.9 pence. (michael.susin@wsj.com)
(END) Dow Jones Newswires
March 26, 2025 06:21 ET (10:21 GMT)
Copyright (c) 2025 Dow Jones & Company, Inc.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.