Oatly slips after Credit Suisse downgrade on inflation impact

Oatly AB

13/09/2022 11:17

** Shares of Oatly Group AB  OTLY.O  fall 0.9% to $3.27
before the bell 
    ** Credit Suisse downgrades stock to "neutral" from
"outperform", weighed down by the impact of inflation on
consumer preferences
    ** Brokerage expects the effect of inflation to be "more
acute" in Europe, and expects higher costs could turn more
consumers towards private-label products in Europe and the U.S.
    ** "Even if plant-based milk demand is durable, we think
widening the price gap while inflation runs hot may cause
switching. It is too early to know if there will be a lasting
impact" - Credit Suisse analyst Kaumil Gajrawala 
    ** Credit Suisse, which also cut OTLY's price target to
$3.43 from $6, says sporadic China lockdowns are disrupting the
company's retail expansion plans
    ** 10 of 16 brokerages rate the stock "buy" or higher, 6
"hold"; their median PT is $6 - Refinitiv data
    ** Up to Monday's close, stock had fallen nearly 59% YTD

 (Reporting by Mehr Bedi in Bengaluru)
 ((Mehr.Bedi@thomsonreuters.com;))