On Tuesday, Ocado Group Plc (LON:OCDO:LN) (OTC: OCDGF) received a reaffirmed Hold rating and a price target of GBP5.75 from Jefferies. The endorsement follows Ocado's Retail Trading Update, which reported a robust performance. The update highlighted continued double-digit growth in retail revenues and an increase in both active customers and average orders per week, attributed to the company's 'Perfect Execution' program.
The financial institution noted that while guidance has not changed since the full year 2023 results announced on February 29, the current growth rate could place upward pressure on consensus revenue forecasts if sustained. This potential was anticipated to be a key topic during the UK analysts call scheduled for 8 a.m.
Ocado's shares had shown no significant movement leading up to the release of the trading update. However, the positive results outlined in the update are expected to elicit a mild positive response from the market. The company's steady growth and the execution of its strategic program seem to position it favorably in the eyes of analysts and investors alike.
Jefferies' analysis suggests that if Ocado can maintain its growth trajectory, there may be room for upward adjustments in revenue expectations. The unchanged guidance, coupled with the current performance, presents a picture of stability and potential for the UK-based online grocery retailer.
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