OTLY - Oatly slides to yet another post-IPO low after HSBC says valuation is still frothy
Oatly (OTLY -9.8%) swings lower after HSBC starts off coverage with a Reduce rating. Analyst Jeremy Fialko is convinced that Oatly management has fundamentally overestimated the size of the oat milk category in the medium term. In addition, Oatly (NASDAQ:OTLY) is said to be overinvesting to the point that margins will continue to be hurt or capacity will need to be cut. Fialko says valuation on OTLY is frothier than Barista blend. HSBC assigns price target of $7.80 to Oatly (OTLY). Shares of Oatly carved out a new post-IPO low of $8.49 earlier in the session vs. the IPO pricing level of $17.
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Oatly slides to yet another post-IPO low after HSBC says valuation is still frothy