Ocado, the British online grocer shares to increase tenfold

Опубликовано: 12 Март 2020
на канале: Boyd Digital: Business News

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Ocado, the British online grocer shares to increase tenfold

British online grocer Ocado Group, which has been shifting its focus to providing supermarket chains worldwide with technology systems, could see its share price appreciate tenfold by 2030, according to Bernstein analysts.As consumers increasingly turn to online shopping for their groceries, Bernstein sees the potential for Ocado's share price to be valued at between £40 and £100 on the assumption that more warehouses will be built globally to meet demand. The shares traded in London in the latest session at £10.61.

Ocado currently has deals to supply 58 warehouses, compared with the 209 that would be needed in 10 years' time if consumers in the developed world do 10% of their shopping online and Ocado's retail partners have a 30% share of their domestic markets by then, Bernstein analyst Bruno Monteyne wrote. There's potential for even bigger growth, he said."Grocery e-commerce penetration will be linked to how much shopping can end up done online," Mr Monteyne wrote. Reaching 10% e-commerce penetration by 2030, as in our base case, has further upside. Maybe that will take another decade, but 10% is not necessarily the end stage of grocery e-commerce.Reaching 10% e-commerce penetration by 2030, as in our base case, has further upside. Maybe that will take another decade, but 10% is not necessarily the end stage of grocery e-commerce.

Bloomberg