Ocado Group (LSE:OCDO) shares rose 5.8% to 335.49p, reaching a new 52-week intraday high of 340p, following positive analyst revisions from Morgan Stanley and JPMorgan.
The UK online grocery technology and automation company’s share price advance followed Morgan Stanley’s decision to upgrade its rating from Underweight to Equal Weight and increase its price target to 300p from 170p.
Morgan Stanley said much of the negative news affecting Ocado in recent years was now behind the company, prompting a reassessment of its outlook.
JPMorgan also increased its price target for Ocado to 460p from 290p, while maintaining its Overweight rating.
The revised targets represent increases of approximately 76% from Morgan Stanley and 59% from JPMorgan, reflecting changes in the investment banks’ assessments of the company’s prospects.
Research from JPMorgan and Berenberg has also highlighted the potential contribution of Ocado’s software and robotics technology to future contracts in the automated grocery fulfilment market.
The analyst revisions follow operational developments reported by Ocado during the first half of 2026.
The company reported revenue and EBITDA growth, supported by its international technology operations and retail business.
Ocado Retail recorded 15% year-on-year growth, while international volumes increased by 27% over the same period.
Management has also outlined cost reduction measures and organisational changes intended to improve the group’s financial performance.
Ocado expects these initiatives to support positive cash flow in the second half of 2026 and during the 2027 financial year, although these remain company forecasts.
The group has continued to secure technology agreements, including a contract announced in July to develop a large automated customer fulfilment centre for a European national retailer.
The agreement forms part of Ocado’s international technology operations, which provide automated warehouse systems and related software to grocery retailers.
Ocado’s latest share price increase followed a gain of 8.93% in the previous trading session, during which the FTSE 250 declined by 0.63%.
The difference in performance indicates that Ocado shares moved independently of the broader mid-cap UK equity market during that session.
For investors, the principal developments are the upward revisions to analyst ratings and price targets, alongside the company’s reported growth in retail and international operations.
The Morgan Stanley upgrade is particularly relevant because it represents a change from a previously negative assessment to a neutral rating.
However, analyst price targets reflect individual research forecasts and do not guarantee future share price performance.
Ocado’s progress towards its cash flow objectives also remains an important consideration, particularly as the company continues investing in its automated fulfilment technology.
Looking ahead, investors will be monitoring additional technology contract announcements, international deployment activity, operating profitability and progress towards the company’s stated cash flow targets.
Further analyst revisions and developments in Ocado’s commercial pipeline may also influence market assessments of the business.
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