Oatly (NASDAQ:OTLY) moved up the charts Wednesday following an upgrade by analysts at Mizuho, citing improving liquidity.
The Japanese bank raised its rating on the stock to Buy from Neutral, advising clients that bearish sentiment has peaked and strong structural growth dynamics are not yet reflected in the share price.
“We view the [January 3] manufacturing agreement as positive, and it enhances visibility into the pivot outlined in November,” the bank’s analysts wrote on Wednesday. “We do not expect FCF-positive operations until [the second half of 2024], but liquidity tightness appears manageable and EBITDA can inflect positive exiting [fiscal year 2023].”
The stock marked a double-digit gain on Tuesday after announcing an expansion of its partnership with Norwegian conglomerate Reitan to increase its footprint in Scandinavia.
According to the company, the new agreement with Reitan will lead to Oatly becoming available in coffee machines in approximately 300 locations of Swedish convenience chain Pressbyrån and 90 7-Eleven convenience stores in the country. All of the properties are owned by Reitan via its Convenience unit.
“Through our partnership with Reitan and integrating Oatly into coffee machines for the first time at this scale, we’re able to make plant-based alternatives a natural part of the everyday lives of millions of people across Sweden,” Jonas Persson Follin, General Manager for the Nordics at Oatly, said. “This is an important step for the plant-based movement and part of our mission to put Oatly everywhere to reduce people’s reliance on dairy and encourage more sustainable consumption habits.”
OTLY shares improved 12 cents, or 4.7%, to $2.81.
Related Stories
