Ocado investors eye further technology deals to justify high valuation

Ocado will deliver an update on

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its third-quarter trading on Tuesday, with analysts eager to see progress on the grocery delivery firm’s efforts to attract more retailers to its technology platform.

Analysts predict continued double-digit sales growth, from both deliveries ordered on its own website and from its deals with other retailers. In the first half of the year Ocado grew its sales by 12.5 per cent compared to the previous 26 weeks.

Meanwhile, Ocado will also give a snapshot of its orders per week and the average order size, a key metric for determining the margin on each delivery.

However, in the absence of earnings figures, which are not reported in the quarterly trading update, investors will eagerly look for any signs of further partnerships with other retailers, after it announced its first international tie-up at the start of June.

http://www.cityam.com/272192/ocado-investors-eye-further-technology-deals-justify-high