Oatly rallies as Mizuho turns bullish after manufacturing deal

Oatly AB

18/01/2023 14:28

** Shares of Oatly Group AB  OTLY.O  up 8.6% at $2.92
premarket after Mizuho upgrades Sweden-based oat drink firm to
"buy" from "neutral"
    ** Brokerage hikes PT from $2.50 to $6
    ** Mizuho analyst John Baumgartner views OTLY's
manufacturing agreement with Ya YA Foods as positive, saying it
enhances the pivot co outlined in Nov
    ** On Jan 3, OTLY announced long-term hybrid manufacturing
partnership in North America with Ya YA Foods, maker of aseptic
food and beverage products
    ** Baumgartner points out that plant-based beverages demand
is resilient, adding OTLY "sufficiently re-based after tough
2022"
    ** Now, 10 of 14 analysts rate OTLY "buy" or "strong buy",
rest "hold", per Refinitiv; median PT $3.65
    ** Through Tues close, OTLY shares have gained 55% to start
2023 after shedding 78% last year
 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-332-219-1430))