Deutsche Bank's Tintin Stormont tips Ocado (LSE:OCDO) as a Buy, with a 310p target, as the grocery delivery and e-commerce technology firm struck a commercial partnership with ASDA, which will utilise the Ocado Smart Platform (OSP) in the UK.
The bullish broker call comes as Ocado landed the tie-up to supply its front-end, in‑store fulfilment and last‑mile planning and route‑efficiency software to the leading supermarket chain.
DB reckons deployments across ASDA and 'dark stores' from 2027 will be a material expansion of the OSP.
Highlighting the scale of the opportunity, Stormont pointed out that Asda handles more than £21bn of sales, operates around 1,100 stores and fulfils over 700,000 ecommerce orders every week.
As the partners aim to go‑live in early 2027, DB noted that Ocado had stated that the transaction is not expected to have a material impact on FY26, as London-listed firm reiterated guidance that targeted cash‑flow positivity in H2 FY26, and for the full year FY27.
The DB analyst pins the investment case on timely, successful implementation and flags the phased roll‑out and the early‑2027 go‑live as the next material proof points for OSP converting large national contracts into recurring technology and services revenue.
