Ocado surges 6.6% after JPMorgan raises target price to 460p

Ocado Group shares jumped 6.6% to lead the FTSE 250 index after JPMorgan raised its price target on the stock. The investment bank upgraded its target to 460p from 290p, driving buying interest in the online grocer.

The surge made Ocado the top gainer on the FTSE 250 index. Meanwhile, healthcare and defensive stocks gained 0.3% to 0.5%, outperforming the broader market during risk-off trading.

Investors are looking ahead to the UK Autumn Budget scheduled for Wednesday, October 28. If Office for Budget Responsibility headroom is below £10 billion and large spending is proposed, gilt yields could spike.

Such spending proposals could cause the FTSE 100 to fall 1% to 2% on sterling weakness. Reports indicate that capital gains tax will not be raised in this budget, supporting sentiment.

Markets are also awaiting the Bank of England decision on November 5. Recent pay growth data suggests the central bank might raise rates, reversing previous expectations of rate cuts.

What do these terms mean?

Price target: An analyst's projection of a stock's future price based on valuation metrics and expected earnings.

FTSE 250: A stock market index consisting of the 101st to 350th largest companies listed on the London Stock Exchange.

Defensive stocks: Shares of companies with stable earnings that tend to perform relatively well during economic downturns.

Gilt yields: The interest rate paid on UK government bonds, reflecting borrowing costs and market conditions.