(Reuters) - Shares in Ocado (LON:OCDO) fell more than 7% at one point on Thursday after Exane downgraded the British online supermarket to "underperform" following its recent rally, citing concerns over subdued growth in its retail business.
"Ocado has doubled since we moved to neutral from underperform in June so having argued the risk-reward had become more-balanced, it seems now to be out of kilter again," wrote Exane in a note, sticking a 390 pence target price.
By 0718 GMT, Ocado, which has recently been at the centre of speculation about potential takeover interest, fell 5.6% to 763 pence, underperforming the broader FTSE 350 index, which was down 0.5%.
The shares are up 24% so far this year.