The firm upgraded OTLY to "overweight" from "neutral"
Plant-based milk name Oatly Group (NASDAQ:OTLY) is surging today, last seen up 6.9% at $15.75 ahead of the bell, after the security received an upgrade from J.P. Morgan Securities to "overweight" from "neutral." The analyst in coverage praised Oatly's revenue potential, and added the stock's chances of upside are currently "far greater" than the downside risk.
Prior to this bull note, the security had been trending lower. Overhead pressure at the 40-day moving average came into place in July, shortly after the stock surged to a June 14, record high of $29. And while the shares have since bounced off their all-time low of $12.84, OTLY has lost 37.2% in the last three months, after going public in May with an initial public offering (IPO) of $17.
The brokerage bunch was already bullish towards the Wall Street newbie coming into today. Specifically, 10 of the 14 analysts in coverage called Oatly stock a "buy" or better, while only four said "hold." Plus, the 12-month consensus target price of $27.46 is a jaw-dropping 73.8% premium to last night's close.