Ocado Earnings: Fair Value Held as Stock Price…
No-moat Ocado reported consolidated results for the 52-week period ended Dec. 1, reaching £3.156 billion in revenue, representing 14% year-over-year growth. Adjusted EBITDA reached £153 million, ahead of company compiled consensus.
However, despite solid operating results, the stock plunged 17% at market opening on Feb. 27 due to a slower-than-expected growth pace for automated warehouses under its technology solutions division.
Ocado still expects to open at least seven new customer fulfilment centers, or CFCs, in the next three years and projects the division to contribute around 10% revenue growth in fiscal 2025.
With our long-term estimates unchanged, we maintain our fair value estimate of GBX 920. Ocado’s retail business, now a…
