Oatly Group initiated with a Buy at DA Davidson

DA Davidson initiated coverage of Oatly Group with a Buy rating and $1.50 price target. The secular tailwinds driving plant based milk adoption “supersede the adverse effect of near term price gaps with cow’s milk,” argues the firm, which believes the company has “proven itself an effective marketer” and is moving away from a self manufacturing strategy that the firm views as the root cause of the company’s issues since its May 2021 IPO. With tangible evidence of revenue and EBITDA progress, the firm thinks Oatly is “worth a look,” the analyst added.