FTSE 250 round-up: Ocado, Wickes and Genuit
A profit warning today added to FTSE 250 gloom, but there was no stopping the progress of two of the past month’s best-performing mid-cap stocks.
20th October 2026 12:57
by Graeme Evans from interactive investor
Photo: Pavlo Gonchar/SOPA Images/LightRocket via Getty Images.
Resurgent Ocado shares today topped the FTSE 250 index for another session as trading updates by Wickes and Genuit drew a contrasting response from mid-cap investors.
Grocery automation business Ocado Group (LSE:OCDO) rallied by another 20.8p to 338p, meaning the former blue-chip stock is double July’s multi-year low price and up by 66% since mid-September.
One factor in Ocado’s back-to-back sessions on top of the FTSE 250 has been this week’s supportive note by Morgan Stanley, which suggested that much of the negative news flow may now be in the rearview mirror.
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Having seen Ocado suffer a spate of delayed or cancelled contracts, the bank noted potential “green shoots” through July’s customer fulfilment centre contract win with Denmark’s Nemlig and the read-across to signs of improvement in the automation capital equipment cycle.
The bank upgraded Ocado to Equal weight, with its new price target of 300p based on its £1.2 billion estimate on the combined value of Ocado’s logistics arm and Marks & Spencer retail joint venture. The bull case, which is based on more contracts and faster route to profitability, values shares at 580p.
It said: “While Ocado is a ‘show me’ story from here, especially as to whether free cash flow can be sustainably positive, we think the valuation is fairly reflective of optional value on its automation tech.”
DIY retailer Wickes Group (LSE:WIX) lifted 9p to 224.5p, its highest level in six months and a rise of more than 25% since the release of interim results in mid-September.
The latest improvement came as the chain reported an acceleration in third quarter like-for-like sales to 4%, having been 1% in the second quarter and 0.3% in the first.
Volume growth and mild price inflation meant the retail arm, which includes TradePro, recorded underlying sales growth of 5.6% in the period.
On a two-year basis, retail like-for-like sales are up 11.5% as the business continues to report “notable strength” in sectors including timber, flooring, roofing and garden.
The project-based Design & Installation arm had a tougher three months, with like-for-like revenues down by 0.6% amid exposure to the uncertain economic environment.
Across the group, Wickes said: “Our value-led and differentiated business model leaves us well-positioned to continue outperforming the market.”
The third-quarter progress means Wickes is on track to meet City expectations, which on average point to growth in adjusted pre-tax profit of 10% for 2026.
Peel Hunt reiterated its price target of 295p and noted the support of a prospective dividend yield of more than 5%. An interim dividend of 3.7p is due to be paid on 6 November.
Market conditions are much more challenging for Genuit Group (LSE:GEN), which today said unseasonably warm weather and anticipated interest rate rises had hurt its heating businesses in recent weeks.
The profit warning by the former Polypipe business, which is the UK’s largest provider of water and climate products, left shares at their low point for the year with a fall of 43.4p to 246.2p.
They were 381p prior to the Middle East conflict and 313p after a rebound between May and August.
The group reported sales of £464.5 million for the first nine months of the year, which represents a like-for-like decline of 4.3% on a year earlier.
The period included May’s double-digit price increases for products affected by significant polymer cost inflation, predominantly in the residential part of the water division.
It now expects full-year operating profits of about £84 million, below City forecasts of between £91 million and £96 million and last year’s £94.4 million.
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Chief executive Joe Vorih said: “Looking ahead, while we expect challenging conditions to continue into the new year, Genuit remains well-placed in markets with regulatory and sustainability-related growth drivers.”
He pointed to structural tailwinds such as new government building standards, social housing policies and the AMP8 water spending cycle. In addition, simplification initiatives previously announced are set to generate over £4 million of operating profit benefit in 2027.
Peel Hunt intends to review its forecasts and 360p target price following today’s update.
It said: “Market conditions remain challenging for Genuit, and the expected pace of recovery is very difficult to call. When volumes do start improving, Genuit should see the benefits.”
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