UK's Ocado tumbles; Barclays downgrades stock to 'underweight'

AutoStore Holdings

16/10/2023 08:41

** Shares of British online supermarket Ocado  OCDO.L  down
4.3% to 508.5p, top pct loser on the FTSE 100 index  .FTSE 
    ** Barclays downgrades stock to "underweight" from
"equal-weight", cuts target price to 430p from 680p
    ** Says co's medium-term guidance is at risk from its
existing customer CFC/module roll-out delays
    ** CFC or Customer Fulfilment Centres, mostly automated, are
OCDO's warehouses built for grocery companies it has partnered
with 
    ** Barclays says new customer pipeline is limited in grocery
space and warehouse automation provider Autostore  AUTO.OL  is
getting competitive
    ** "Current Amazon/Autostore trial in the US presents a
significant negative tail-risk that is not well understood" -
Barclays
    ** Ocado shares hit lowest level since June 28
    ** Ocado shares down 17.6% YTD, including session moves

 (Reporting by Anchal Rana in Bengaluru)
 ((Anchal.Rana@thomsonreuters.com; +91 9915609050;))