Author argues Oatly is undervalued due to falling oat prices, new high-margin product launches, and a planned China carve-out that would improve margins and growth.
OTLY — LONG The author argues Oatly is a comeback story not yet priced in, citing oat prices anchored at 5-year lows since September (20% below H1 levels) which will significantly boost 2026 margins. New product launches (matcha, barista popcorn, barista caramel) with higher gross margins are gaining traction in the EU and will contribute to Q4 growth and mix improvement. The planned carve-out of Chinese operations will remove a margin-dilutive business, increase gross margins, and make the company asset-light with mid-to-high single-digit growth, leading to a re-rating. Main risk is execution of the turnaround and product adoption.
So overall asset light and significantly higher gross margin business , which will be growing mid to high single digits will be re-rated soon in terms of shareprice.
This Reddit post, published January 27, 2026, features u/No-Topic5958 discussing OTLY. 1 trade idea extracted by AI with direction and confidence scoring.
Speakers: u/No-Topic5958 · Tickers: OTLY