Deutsche Bank has downgraded online food retailer Ocado (LON:OCDO) to 'sell' from 'hold' following last week's third-quarter trading update and stating that things are not going to get any easier.
The broker said: "Sales growth was broadly in line with expectations - retail sales growth was 13.6% vs. DBe 13% and consensus 14%. However, the statement included a cautious margin comment "As the market remains competitive, we are seeing sustained and continuing margin pressure and there is nothing to suggest that this will change in the short term."
Analysts have left their price target unchanged at 220 pence per share which implies around 18 per cent potential downside, despite the shares falling 17 per cent post Q3.
At 1:54pm: (LON:OCDO) Ocado Group Plc share price was -6.05p at 262.75p