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Ocado Share Price: Why Lotte Partnership Has Boosted Ocado
In less than a month, the Ocado share price has surged from trading at 380p to its current price of 686, a more than 80 per cent price surge. However, in today’s trading session, Ocado is down by two per cent, ending a bullish streak of the past two trading sessions.
The current price surge has partly been due to the company’s entrance in the South Korean market through the partnership with Lotte Shopping. According to reports, Ocado will work with Lotte to build a network of robotic warehouses using its smart platform technology. The partnership will also see Ocado providing the technology required for building online grocery orders from Lotte’s stores.
Lotte is the second-largest grocer in South Korea, with an annual revenue of 15.6 trillion Korean won (£9.5bn), and the partnership will see Ocado increasing its cash flow and possibly meeting its bottom line. The partnership will also see Lotte paying Ocado solutions certain fees upfront, followed by other fees during the development phase and ongoing fees linked to sales and installed capacity within the CFC and service criteria, which will also significantly improve Ocado’s profitability.
Ocado Share Price Forecast
The recent news of the partnership has seen Ocado’s price surge in the markets. However, the recent 80 per cent price surge in the past four weeks has not been enough to erase the year-to-date losses, which currently stand at over 50 per cent.
However, looking at the chart below, it is clear that the company is in a recovery push, with its recent price surge. Therefore, based on recent price action and fundamental factors, I expect the current bullish trend to continue. There is a high likelihood that Ocado’s share price may go as high as 800p within this month. However, should the prices drop below the 650 price level, then my bullish analysis will be invalidated.
Kelvin Maina is a computer science graduate who has a passion for cryptocurrencies. In 2017, he became professional crypto and Forex technical analyst for CryptoPolitan and in 2022, he joined InvestingCube.com.
United States of America
