Oatly shares up and down: Analysts warn of risks!

Oatly shares up and down: Analysts warn of risks!

The Swedish plant milk manufacturer Oatly is currently showing mixed development in its shares. In the fourth quarter of 2024, Woodline Partners LP reduced its stake by 46.2% by selling 1.85 million shares. Woodline's remaining stake is now 2.15 million shares, representing 0.36% of the company. In contrast, several investors increased their positions, including Van ECK Associates Corp, up 60.6%, Rhumbline Advisers, up 76.1%, and Geode Capital Management, which increased its holdings by a remarkable 463.2%. Two Sigma Investments LP even increased its shares by 279.6%.

Oatly's quarterly figures for March 2025 illustrate a business ups and downs. Gross profit rose to $62.3 million compared to $53.9 million in the first quarter of 2024, while profit margin improved by 4.49 percentage points to 31.6%. The net loss decreased significantly from $45.8 million to $12.4 million. Revenue was $197.53 million, below expectations of $199.97 million. Earnings per share improved from -0.96 to -0.51 dollars. Nevertheless, the balance sheet shows weaknesses with a debt ratio of 1.39 and a liquidity ratio of 0.56.

Analyst opinions and price forecasts

Analysts' opinions on Oatly are also varied. Piper Sandler lowered its price target to $12 from $16 but maintains an Overweight rating. In contrast, DA Davidson increased the price target from $15 to $17 and recommends buying the stock. The average price target is $16.80, which promises a potential of over 80% at the current price level. The current price is $10.98.

The recent price changes are significant. Over the last five days, the price has fallen by 3.00%, while it has risen by 7.31% since the beginning of the year, but has adjusted by a total of 16.94% since the beginning of the year. Analysts expect a median price target of $19.60, which opens up potential of 73.22% to current levels. This in the context of the highest and lowest price targets of $40.00 (+253.51% gap) and $10.20 (-9.85% gap) illustrates the spread in analyst opinions, which give an average recommendation to increase.

Technical analysis and trading volume

The stock's technical analysis shows a 20.5% increase since the bottom on May 14th. The share recently reached a price of $11.32 with above-average trading volume. This positive technical development could encourage investors to take a closer look at the stock.

Oatly remains an exciting topic in the area of ​​plant-based foods. The conflicting valuations and the deteriorating financial situation contrast with the optimistic price targets and analyst expectations. Investors are encouraged to monitor developments closely, particularly given the high volatility and interesting market developments.

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