We maintain our 920p per share fair value estimate for no-moat Ocado Retail OCDO after the firm’s trading statement for the 13 weeks to Dec. 1, 2024 was in line with our expectations.

Even with shares up nearly 10% to 296p following the announcement, the stock continues to trade in 5-star territory.

We continue to hold our view that Ocado Retail is well-positioned to capture share as online grocery penetration increases.

Key Morningstar Metrics For Ocado OCDO

Fair Value Estimate: GBX 920.00
Economic Moat: None
Morningstar Rating: ★★★★★
Forward Dividend Yield: None
Morningstar Uncertainty Rating: Very High

Retail revenue increased 17.5% to £715.8 million in the period, driven by positive volume momentum, which was up 17%.

Average orders per week and active customers rose 16.9% and 12.1%, respectively, indicating that more customers are turning to Ocado more frequently thanks to improved offerings and service.

We were also pleased to see metrics including average basket value, average selling price, and average basket size increase in the period, signaling profitable expansion for the firm.

Ocado Stock Price Versus Morningstar Fair Value Estimate

The author or authors do not own shares in any securities mentioned in this article. Find out about Morningstar’s editorial policies.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free