Oatly Group price target lowered to $12 from $16 at Piper Sandler

Piper Sandler lowered the firm’s price target on Oatly Group (OTLY) to $12 from $16 and keeps an Overweight rating on the shares. The firm notes the company reported revenue and adjusted EBITDA in-line with its expectations, but gross margins above its expectations. However, top-line momentum continued to slow in Q1, driven by cutting underperforming SKUs in its frozen portfolio and continued consumer softness in the U.S. Consumer buy-rate is decreasing in the U.S. and EU, and Oatly is planning a new brand refresh, which is underway in the U.K. and Germany and heading to the U.S., Piper adds.