(Bloomberg) --
After Ocado Group Plc's share price halved in a year, Credit Suisse Group AG analysts say it's time to buy.
The online grocer's stock was upgraded to outperform from underperform by analysts led by Victoria Petrova, who said the recent unveiling of new grocery-picking robots helps to boost confidence in the U.K. company, while an almost “50% share price correction in the past 12 months reflects key risks.”
The development of new, lower-cost technology that will speed up online grocery deliveries allows for deeper ties with existing partners and increases the probability of several new deals being signed during the next fiscal year, the analysts wrote in a note to clients on Wednesday.
READ: Ocado Unveils New, Lighter Robots in Grocery Delivery Push
Ocado shares jumped as much as 8% in Wednesday morning trading and were the biggest gainers in the U.K.'s benchmark FTSE 100 Index. The stock fell 10% last month as investors shifted away from so-called growth stocks into cheaper shares.
“We believe current levels offer a buying opportunity,” the analysts wrote.
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