Oatly Group resumed at Equal Weight from Overweight at Morgan Stanley

Morgan Stanley resumed coverage of Oatly Group with an Equal Weight rating, down from a prior Overweight, with a $1.25 price target. The firm sees oat milk as a robust growth category and Oatly positioned to gain share over time, but sees low visibility, both around topline growth and “if/when” Oatly can generate EBITDA profitability, the analyst tells investors. Near term, the firm’s FY24 estimate for 5% constant currency revenue growth is at the bottom of Oatly’s 5%-10% target and it sees EBITDA at the bottom of the range as well.