Oatly Group AB Sponsored ADR (OTLY) is looking like an interesting pick from a technical perspective, as the company reached a key level of support. Recently, OTLY's 50-day simple moving average crossed above its 200-day simple moving average, known as a "golden cross.
Oatly is rated Buy with a $22 price target, reflecting operational turnaround and accelerating revenue growth. Gross margin improvements and positive adjusted EBITDA signal progress, though FCF remains negative and profitability is not expected in FY26. Key catalysts include the potential China segment carve-out and US product launches, both of which could materially improve financials and growth.
Oatly Group (NASDAQ:OTLY) saw its shares surge 29% on Wednesday after the oat drink maker reported second quarter results that showed higher revenue, improved margins and progress toward profitability, while raising its full-year revenue outlook. The company reported Q2 revenue of $240.1 million, up 15.2% from $208.4 million a year earlier.
The headline numbers for Oatly Group (OTLY) give insight into how the company performed in the quarter ended June 2026, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.
Oatly Group NASDAQ: OTLY raised its full-year revenue outlook after reporting stronger second-quarter sales growth, citing gains from product innovation, expanded distribution and rising demand across key markets. Management said the company remains on track to deliver adjusted EBITDA toward the low end of its previously issued range despite cost pressure tied to the conflict in the Middle East and continued spending behind growth initiatives.
The oat milk company is working with restaurants and cafes to consult on their beverage programs instead of just acting as a supplier.
Oatly Group AB (OTLY) Shareholder/Analyst Call Prepared Remarks Transcript
Oatly's growth is solid at the moment, indicating that the fundamentals of the business remain intact, particularly in the US and Europe. While Oatly is profitable on an adjusted EBITDA basis, the company is still burning cash, and recent improvements have been modest. Cash burn is problematic given Oatly's dwindling cash balance and large debt position.
Oatly Group AB (OTLY) Q1 2026 Earnings Call Transcript
Although the revenue and EPS for Oatly Group (OTLY) give a sense of how its business performed in the quarter ended March 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Oatly Group (OTLY) might move higher on growing optimism about its earnings prospects, which is reflected by its upgrade to a Zacks Rank #2 (Buy).
The average of price targets set by Wall Street analysts indicates a potential upside of 57.1% in Oatly Group (OTLY). While the effectiveness of this highly sought-after metric is questionable, the positive trend in earnings estimate revisions might translate into an upside in the stock.