For analysts at Barclays, which set a target price of 825p, the firm “doesn’t come cheap” but it does contain a unique asset in its technology platform”, Ingenuity.
The platform, which picks up the IT and logistical requirements of third-party brands such as PZ Cussons, Hotel Chocolat and Nestle, has been a centre of interest ahead of The Hut Group’s IPO last month, being similar to Ocado’s success story of partnering with other supermarkets.
Barclays said the focus is now the run rate of new contract flow in the next 12 months, which is expected to be strong.
Meanwhile, JP Morgan set a target price of 865p which offers a 25% upside potential.
“Strong execution in technology and vertical integration alongside influencer marketing allow for strong market positions and market share gains,” analysts commented.
The stock was hot news in the City, with Goldman and Jefferies initiating coverage with a ‘buy’, setting their target prices at 875p and 780p respectively.
Shares were trading at 693.2p on Tuesday morning.