Ocado sales could exceed £2bn for first time as customers flock to order food from new partner Marks & Spencer
Ocado sales could exceed £2billion for the first time this year after customers flocked to order food from its new partner Marks & Spencer.
Credit Suisse forecasts that the grocery delivery giant has increased sales by two thirds in the past three months to reach more than £600million.
It said this could surprise some in the City who had raised concerns about its ability to cope with high levels of demand.
Driving force: Ocado struggled to keep pace with orders during lockdown, when sales increased 44 per cent
Ocado struggled to keep pace with orders during lockdown, when sales increased 44 per cent, and it appeared be facing similar issues after the M&S launch.
But analysts at the Swiss bank said it had addressed some of its ‘capacity concerns’.
Its shares have doubled in value from £10.77 in early March to £22.66, valuing the business at £17billion.
But the bank warned that the shares could now be overvalued because investors are ‘overestimating’ the number of future partners for its global solutions business, and underestimating ‘execution risk’.