Ocado has 50% upside, says JP Morgan as price target jumps to 460p

What Brokers Say Retail & Consumer Written by: Ian Lyall 09:30 Tue 20 Oct 2026 --> Edited by: Angela Harmantas Disclaimer No investment advice About this content Editorial Standards & Policies Share article About this content × About Ian Lyall Ian Lyall, a seasoned journalist and editor, brings over three decades of experience to his role as Managing Editor at Proactive. Overseeing Proactive's editorial and broadcast operations across six offices on three continents, Ian is responsible for quality control, editorial policy, and content production. He directs the creation of 50,000 pieces of real-time news, feature articles, and filmed interviews annually. Prior to Proactive, Ian helped lead the business output at the Daily... Read more About the publisher Proactive financial news and online broadcast teams provide fast, accessible, informative and actionable business and finance news content to a global investment audience. All our content is produced independently by our experienced and qualified teams of news journalists. Proactive news team spans the world’s key finance and investing hubs with bureaus and studios in London, New York, Toronto, Vancouver, Sydney and Perth. We are experts in medium and small-cap markets, we also keep our community up to date with blue-chip companies, commodities and broader investment stories. This is content that excites and engages motivated private investors. The team delivers news and unique insights across the market including but not confined to: biotech and pharma, mining and natural resources, battery metals, oil and gas, crypto and emerging digital and EV technologies. Use of technology Proactive has always been a forward looking and enthusiastic technology adopter. Our human content creators are equipped with many decades of valuable expertise and experience. The team also has access to and use technologies to assist and enhance workflows. Proactive will on occasion use automation and software tools, including generative AI. Nevertheless, all content published by Proactive is edited and authored by humans, in line with best practice in regard to content production and search engine optimisation. Ocado Group PLC ( LSE:OCDO ) View Price & Profile Ocado has 50% upside, says JP Morgan as price target jumps to 460p Published: 09:30 20 Oct 2026 EDT Ocado Group PLC (LSE:OCDO) , the online grocery technology group, has about 50% share-price upside, according to JP Morgan, which raised its price target to 460p from 290p. The bank reiterated its 'overweight' rating, with analyst Marcus Diebel arguing that improving operational performance and several upcoming catalysts support a sustained recovery in the investment case. JP Morgan expects Ocado’s pipeline of five customer fulfilment centre ramp-ups between 2027 and 2029 to support growth in its technology division, with the projects now largely de-risked. The bank forecasts compound annual growth of 21% in group earnings before interest, tax, depreciation and amortisation between 2025 and 2028, supported by tighter cost control. Ocado’s management remains confident of achieving underlying free cash flow break-even in the second half of 2026, a milestone that JP Morgan believes could strengthen investor confidence. The bank also highlighted Ocado Retail, the joint venture with Marks & Spencer, which increased revenue by 15% in the first half and has opportunities to expand margins and capacity. JP Morgan said Ocado’s balance sheet had strengthened, leaving the group without material refinancing requirements over the next three years. Upcoming corporate events at US supermarket group Kroger on October 20 and Marks & Spencer on November 10 could provide further evidence of growing strategic interest in online groceries. The bank argued that store-based order picking is becoming less operationally efficient and economically attractive at scale, potentially increasing demand for automated fulfilment systems such as Ocado’s. JP Morgan also raised its 2027 and 2028 earnings forecasts by 1% and 2%, respectively, after incorporating additional cost savings into its model. A more significant change to its valuation assumptions was the removal of further site closures from its price-target calculation, compared with 33 previously assumed for conservatism. The revised 460p target values Ocado’s existing contracted business and assume only one additional module, leaving potential upside if existing partners or new customers commit to further automation projects. Continue reading