OTLY - Oatly upgraded to Buy as Mizuho applauds manufacturing agreement

Oatly Group AB ( NASDAQ: OTLY ) stock gained sharply on Wednesday after Mizuho stepped off the sidelines to take a bullish stance.

The Japanese bank raised its rating on the stock to Buy from Neutral, advising clients that bearish sentiment has peaked and strong structural growth dynamics are not yet reflected in the share price.

“We view the [January 3] manufacturing agreement as positive, and it enhances visibility into the pivot outlined in November,” the bank’s analysts wrote on Wednesday. “We do not expect FCF-positive operations until [the second half of 2024], but liquidity tightness appears manageable and EBITDA can inflect positive exiting [fiscal year 2023].”

Oatly ( OTLY ) stock rose 5.99% in premarket trading on Wednesday.

Read more on the company’s expansion into Nordic convenience stores .

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