The Ocado share price has seen a rally this Wednesday on the back of an upbeat price outlook by RBC Capital Markets.
RBC Capital Markets is foreseeing a 15.2% upside potential in the Ocado share price and has raised its price target from 1150p to 1350p. This upgrade comes as RBC considered recent deals that Ocado has entered into with Morrison Supermarkets, Sobey, Casino, Kroger and M&S as being a key factor that will enhance the valuation of Ocado’s solutions business. Ocado’s solution business is responsible for supplying the digital platform and other online retailers.
This comes as a boost to Ocado, one of the pandemic darling stocks of 2020. A return to conventional shopping left the Ocado share price floundering in 2021. Still, it is seeking a comeback as the company intends to leverage its aggressive investment in cloud computing and the Internet of Things to pursue a data-driven business model.
The Ocado share price is up 2.31% on the day.
Ocado Share Price Outlook
Wednesday’s uptick confirms the break of the 1415.0 resistance, putting the price activity on course to attain the 1486.5 resistance. If the bulls uncap this level, 1558.0 becomes a new resistance target while 1630.5 and 1699.5 stay within range to become additional targets if the recovery move is more extensive.
On the flip side, rejection at any of the mentioned barriers to the north could provoke renewed selling, targeting 1415.0 initially before 1369.0 and 1307.5 become additional targets to the south.
Ocado: Daily Chart
Follow Eno on Twitter.