Barclays starts AutoStore at 'overweight' as patent concerns fade
22/09/2023 10:11
** Barclays initiates AutoStore AUTO.OL with an
"overweight" rating and a target price of NOK 24, as the
warehouse automation provider moves past patent concerns
** Settlement of the patent litigation with Ocado allows
AutoStore to move on and develop in other areas, such as
grocery, which were held back by the litigation, the brokerage
says
** Technology is still the key driver of long-term growth
and sustainability, as per Barclays
** It expects AutoStore's cubic storage to remain
competitive, saying it will likely continue to outperform the
industry in 2024-2027
** Emerging players may have innovative features but these
are yet to be proven to be sufficiently commercial, Barclays
adds
** It expects AutoStore to regain order momentum once the
market recovers; sees 12%/25% revenue growth in 2024/2025, with
sequential order recovery in 2024
** Out of 11 analysts that cover AutoStore, four rate it
"strong buy" or "buy", five "hold", and two "strong sell" or
"sell"
(Reporting by Marta Frąckowiak)
((marta.frackowiak@thomsonreuters.com))