Morgan Stanley upgrades Ocado after selloff

Morgan Stanley upgraded its recommendation on shares of online supermarket Ocado on Monday to ‘overweight’ from ‘equalweight’ following a selloff.

The bank said that with the shares now down 34% since the peak in September, near-term risks are priced in.

"Given the compelling total addressable market, and the share pricing in only 388p for new contracts, this represents an attractive entry point," it said.

MS upped its price target on the stock to 2,825p from 2,813p.

At 0910 BST, Ocado shares were up 3.8% at 1,949.50p.