Morgan Stanley Cuts Oatly Target Despite Profitable Growth

Morgan Stanley lowered its price target for Oatly Group AB (NASDAQ: OTLY) from $16 to $14.50 while maintaining a Neutral (Equal Weight) rating following the Q4 results. The company reported profitable growth for the first time, with constant currency revenue growth and positive adjusted EBITDA, validating its new growth strategy. However, Oatly revised down its full-year revenue forecast due to slower-than-expected growth in North America and a challenging macroeconomic environment in China, while still affirming its profitability targets. These factors indicate a balance between operational progress and commercial challenges, leading to a cautious response from analysts and investors.