OTLY - Oatly Group is cut at BofA due to ongoing supply issues

Bank of America lower its rating on Oatly Group (NASDAQ:OTLY) following the earnings miss and lowered outlook for Q4. The firm moves to a Neutral stance from Buy and drops its price objective to $11 from $32 as the bull case gets wadded up due to supply and production issues. Analyst Bryan Spillance: "While we still believe in the viability of oat milk as a disruptor to both the dairy and plant-based milk categories, delays in ramping production and other operational complexities are likely to hinder the broader expansion of OTLY in the near to medium term. As such we believe the market will be less lenient toward a revenue-based story with negative EBITDA until consistent execution is achieved." Shares of OTLY are down 1.28% premarket to $9.24 after shedding more than 20% yesterday. Read a breakdown of Oatly's (OTLY) Q3 earnings report and dig into the earnings conference call.

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Oatly Group is cut at BofA due to ongoing supply issues