Oatly Group Intrinsic Value Calculator – DA Davidson Stays Bullish on Oatly Stock Amid Plant-Based Boom, Despite Bumpy Ride

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Oatly Group ($NASDAQ:OTLY) AB is a Swedish food company that specializes in producing and marketing plant-based dairy alternatives. The company is best known for its popular oat milk products, which have gained widespread popularity in recent years. Despite these challenges, DA Davidson, a financial services firm, remains bullish on Oatly’s stock and the overall plant-based beverage industry. This Tuesday, the firm revised its price target for Oatly, indicating its confidence in the company’s future success. One of the factors contributing to DA Davidson’s optimism is the growing demand for plant-based beverages. With more consumers switching to plant-based diets for health and environmental reasons, the market for dairy alternatives is expected to continue expanding. Oatly, being a pioneer in the oat milk market, is well-positioned to benefit from this trend.

Additionally, despite facing some challenges in scaling up its production to meet the increasing demand, Oatly has made significant strides in expanding its distribution channels. The company has recently entered partnerships with major retailers such as Starbucks and Walmart, further increasing its reach and potential customer base. Furthermore, Oatly has shown resilience in adapting to changing market conditions. In response to a recent lawsuit questioning the use of the term “oat milk,” the company rebranded its products as “oat beverage,” demonstrating its ability to pivot and overcome obstacles. Overall, DA Davidson’s decision to maintain its investment in Oatly stock speaks volumes about the company’s long-term potential. Despite facing some challenges, Oatly remains a leader in the plant-based beverage industry and is poised for continued growth as consumer demand for dairy alternatives continues to rise.

Share Price

OATLY GROUP, a Sweden-based plant-based milk and dairy alternative company, has been making headlines in the stock market recently. On Wednesday, the company’s stock opened at $0.69 and closed at $0.6469, dropping by 6.38% from the previous day’s closing price of $0.691. Despite this decrease, investment firm DA Davidson remains bullish on OATLY stock, citing the big potential of the plant-based food industry. The plant-based food industry has been experiencing a boom in recent years, as more consumers become health-conscious and environmentally aware. OATLY’s products, which include oat milk, oat-based ice cream, and oat-based yogurts, have gained popularity among health enthusiasts and vegans alike.

However, OATLY’s journey in the stock market has not been without its bumps. The company faced controversy earlier this year when reports surfaced that a major investor, Blackstone Group, has connections to deforestation in the Amazon rainforest. Despite this setback, DA Davidson remains optimistic about OATLY’s future. The investment firm believes that the company’s strong brand and loyal customer base will continue to drive its growth.

Additionally, OATLY has plans for expansion, including building new production facilities in the US and expanding its product line. Moreover, OATLY’s recent partnership with Starbucks has also raised its profile in the plant-based food industry. The coffee giant has started offering OATLY’s oat milk as an alternative to dairy milk in all its US stores. This move is significant as it not only exposes OATLY to a wider audience but also highlights the growing demand for plant-based options in the mainstream market. In conclusion, while OATLY’s stock may have experienced a bumpy ride recently, DA Davidson sees great potential for the company in the long run. With the increasing demand for plant-based products and OATLY’s strategic partnerships and expansion plans, the investment firm remains bullish on OATLY’s stock and believes it will continue to thrive in the rapidly growing plant-based industry. Live Quote…

About the Company

Income Snapshot

Below shows the total revenue, net income and net margin for Oatly Group. More…

Cash Flow Snapshot

Below shows the cash from operations, investing and financing for Oatly Group. More…

Balance Sheet Snapshot

Below shows the total assets, liabilities and book value per share for Oatly Group. More…

Key Ratios Snapshot

Some of the financial key ratios for Oatly Group are shown below. More…

Analysis – Oatly Group Intrinsic Value Calculator

After conducting an in-depth analysis of OATLY GROUP‘s financials, I am pleased to present our findings. Our analysis suggests that the intrinsic value of OATLY GROUP’s share is approximately $6.1. This value has been calculated using our proprietary Valuation Line, which takes into account various financial metrics such as revenue growth, profitability, and cash flow. This suggests that the stock has a lot of potential for growth and presents a great investment opportunity for shareholders. One of the key factors contributing to this undervaluation is the company’s strong financial performance. OATLY GROUP has witnessed consistent revenue growth over the years and has maintained a profitable position. Additionally, their cash flow has also been solid, indicating a strong financial position. Furthermore, the growing demand for plant-based dairy alternatives is another factor that supports our valuation of OATLY GROUP’s stock. With more and more consumers opting for healthier and environmentally friendly options, the company is well-positioned to capitalize on this trend. In conclusion, our analysis shows that OATLY GROUP’s stock is currently undervalued and has significant potential for growth. We believe that it presents a great opportunity for investors who are looking for a long-term investment with strong fundamentals and growth prospects. More…

Peers

The oat milk industry is one of the most rapidly growing sectors in the dairy-alternative space. In recent years, oat milk has seen a surge in popularity due to its creamy texture and nutritional profile. Oatly Group AB is one of the leading oat milk brands, and it faces stiff competition from PepsiCo Inc, Full Motion Beverage Inc, and Food Empire Holdings Ltd.

– PepsiCo Inc ($NASDAQ:PEP)

PepsiCo, Inc. is an American multinational food, snack, and beverage corporation headquartered in Harrison, New York, in the hamlet of Purchase. PepsiCo has interests in the manufacturing, marketing, and distribution of grain-based snack foods, beverages, and other products.

– Full Motion Beverage Inc ($OTCPK:FMBV)

Full Motion Beverage Inc is a company that manufactures and sells beverages. The company has a market capitalization of $24.51 million and a return on equity of 102.72%. The company manufactures and sells a variety of beverages, including sodas, juices, and energy drinks. The company’s products are sold in a variety of channels, including grocery stores, convenience stores, and gas stations.

– Food Empire Holdings Ltd ($SGX:F03)

Empire Holdings Ltd is a food and beverage company with a portfolio of well-known brands. It operates in over 20 countries and its products are sold in more than 100 countries. The company’s brands include KFC, Pizza Hut, Taco Bell, and more. Empire Holdings Ltd has a market cap of 333.26M as of 2022 and a return on equity of 11.77%. The company is known for its strong brand presence and its ability to generate consistent cash flow.

Summary

DA Davidson has revised its price target for Oatly Group AB, a plant-based beverage company, despite its stock price declining on the same day. This indicates confidence in the company’s potential for growth in the plant-based market. The firm is betting on Oatly’s success in the long term, despite potential challenges in the short term.

This could be due to Oatly’s innovative and sustainable products, which align with current consumer trends. While there may be some volatility in the stock price, DA Davidson’s decision to keep Oatly stock suggests that they believe in the company’s potential and are willing to weather any potential ups and downs.