Proactive Investors
06 Aug 2026, 21:54 UTC · 10w ago
UBS cuts Ocado target by a third as growth path stays clouded
Impact · against what's priced in
The outlook for Ocado is predominantly negative as UBS highlights a significant divergence between improving cash flow and deteriorating growth prospects in the technology solutions arm. While the path to positive cash flow is clearer, the reliance on one-off settlement gains to mask underlying revenue declines and the lack of commercial evidence for store-based automation weigh on the valuation.
- OCDO−0.50
No priced-in read yet
- In context
UBS cut its price target by 34% to 230p, driven by a 13% reduction in current-year technology solutions revenue forecasts and the removal of recurring fee income from Kroger and Sobeys. Although cash flow is expected to turn positive by 2027, the market lacks evidence of successful commercial deployment for the new store-based automation strategy.
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