Oatly Group downgraded to Sector Perform from Outperform at RBC Capital

RBC Capital analyst Nik Modi downgraded Oatly Group to Sector Perform from Outperform with a price target of $1.80, down from $7. The company reported “underwhelming” Q2 results and provided major updates to its strategy in China, the analyst tells investors in a research note. The firm says post-pandemic shifts in consumer behavior are forcing Oatly to forgo high-growth initiatives and focus on the core business. While the brand is healthy, there will be “pain points along the road” to profitability due to the lack of visibility, writes RBC.