Ocado sales could exceed £2 billion for the first time this year thanks to its partnership with M&S.
Credit Suisse forecasts that the grocery tech specialist has increased sales by two thirds in the past three months, to reach more than £600 million, according to a report by This is Money.
If Ocado sales stay at that rate, it will achieve sales of £2,400 million across twelve months.
The Swiss investment bank added that this could come as a surprise to those in the City who had concerns about Ocado coping with high levels of demand following its launch with M&S at the start of the month.
During the first days of the partnership going live, Ocado was forced to apologise to customers after a “surge in demand” meant it had no choice but to cancel orders just hours before they were due.
The retailer also paused all deliveries to employees as it attempted to clear the backlog of customer orders.
Credit Suisse added that Ocado’s shares could now be overvalued due to investors are ‘overestimating’ the number of future partners for its global solutions business, and underestimating ‘execution risk’.