At least 10 analysts initiated coverage of the Wall Street newbie earlier
Plant-based milk name Oatly Group (NASDAQ:OTLY) is down 3.9% at $28.26 at last check, despite at least 10 analysts initiating coverage of the security earlier, nearly one month after its Nasdaq debut with an initial public offering (IPO) price of $17. For one, Credit Suisse started with an "outperform" rating and $30 price target, noting OTLY's strong marketing and brand awareness. Meanwhile, both J.P. Morgan Securities and Morgan Stanley took a more neutral stance, as they wait for a more attractive entry point.
Prior to this negative price action, the security surged earlier this morning to hit an all-time high of $29. Shares have been carving a channel of higher highs since the equity first went public in May, with support from the 10-day moving average. Month-to-date, OTLY is up 15.4%,
As it stands, the brokerage bunch is bullish towards Oatly stock, with all five analysts in question carrying a "buy" or better rating. Echoing this is a 12-month consensus target price of $32.80, which is a whopping 20% premium the security's current levels.
The equity's usually quiet option pits are brimming with activity today. So far, 4,813 calls have already exchanged hands, which is six times the intraday average. Most popular is the July 30 call, followed by the June 30 call.