UPDATE: Guggenheim Starts Oatly Group AB (OTLY) at Buy

June 14, 2021 2:39 AM EDT
Get Alerts OTLY Hot Sheet
Price: $18.04 --0%

Rating Summary:
    7 Buy, 4 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 17 | New: 40
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(Updated - June 14, 2021 6:33 AM EDT)

Guggenheim analyst Laurent Grandet initiates coverage on Oatly Group AB (NASDAQ: OTLY) with a Buy rating and a price target of $32.00.

The analyst commented, "Following the initial public offering on May 20, we are initiating coverage on OTLY shares with a BUY rating and a $32 price target assuming a 10x multiple on our discounted CY23 sales estimate. We think Oatly is uniquely positioned with a defensible market position thanks to (a) its emphasis on sustainability, (b) a science-based and manufacturing competitive advantage, and (c) disruptive marketing with a unique “in-your-face” brand message to challenge the status quo. In our view, the company is in the early stages of a long-term growth story that could generate double-digit annual sales growth for at least the next 10 years if it continues to invest heavily in capacity expansion. We see FY21 as a transition year with significant capex investments to double capacity, gross margin contraction from a less favorable manufacturing mix to help service volume demand, and higher SG&A expenses from becoming a public company."

For an analyst ratings summary and ratings history on Oatly Group AB click here. For more ratings news on Oatly Group AB click here.

Shares of Oatly Group AB closed at $28.73 yesterday.


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