Ocado has a “racy valuation” but is a “sophisticated offering with everything to prove”, according to Collins Stewart analyst Greg Lawless.
He was one of around 20 unconnected analysts - including Oriel, Evolution and Shore Capital - who visited Ocado’s head office and depot in Hatfield, Hertfordshire, on Tuesday.
Lawless said: “Ocado has an impressive supply chain with a highly automated warehouse, which is at creaking capacity; therefore it needs to expand.
“We would not yet rate it a buy, though, as it has got to start making money.”
The online grocer had not engaged with unconnected analysts during its flotation process and received a barrage of criticism about its original valuation of more than £1bn because it has not yet made a pre-tax profit.
Ocado ultimately slashed its IPO price to 180p to get the float away, but the share price has since slipped.
Ocado, which delivers Waitrose products, plans to open a second warehouse and expand its range of own-brand products.