Oatly Group AB

Oatly Group AB (NASDAQ: OTLY) is a Sweden-based oat milk company. The company’s dairy product portfolio includes milk, ice creams, yogurts, cooking creams, spreads, and on-the-go drinks. OTLY operates in three geographic regions, namely Americas, Asia, and Europe, Middle East, and Africa (EMEA).

Key Highlights

• The company reported a 59.40% rise in revenues to USD 286.20 million during H1FY21 (ended June 30, 2021) compared to USD 179.55 million during H1FY20.
• OTLY reported an increase in net losses to USD 91.45 million during H1FY21 vs. USD 12.96 million during H1FY20, primarily due to a significant increase in Selling, general, and administrative (SGA) expenses.
• It operates in a highly competitive market where pricing pressure exists. As a result, profit margins are anticipated to remain constrained.
• OTLY announced an increase in oat base capacity at its Ogden, Utah facility on August 16, 2021, to accommodate increased customer demand.
• On May 19, 2021, OTLY completed its IPO listing at the price of USD 17.00 per American Depositary Shares (ADS).
• Stock is currently trading below its crucial short-term (50-day) SMA support levels.
• Stock is leaning towards the lower band of the 52-week range of USD 14.87 to USD 29.00.
• OTLY stock price has declined 25.51% in the past three months, compared to a 30.76% decline in the NASDAQ Composite index.

Technical Price Chart (as of September 01, 2021). Analysis by Kalkine

Conclusion: OTLY's stock has fallen 25.12% in the past three months and is trading around its IPO price. Considering the loss-making history, global pricing pressure, uncertain outlook, and technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 17.83, down 2.14% as of September 01, 2021.

*The reference data in this report has been partly sourced from REFINITIV.

Ocugen, Inc.

Ocugen, Inc. (NASDAQ: OCGN) is a clinical-stage biopharmaceutical company dedicated to discovering, developing, and commercializing gene treatments to treat blindness and producing a COVID-19 vaccine.

Key Highlights

• The firm earned no revenue in Q2FY21, and its losses worsened due to rising operational expenses.
• As of June 30, 2021, the company had cash and cash equivalents of USD 115.64 million with total debt of USD 1.67 million.
• On July 15, 2021, OCGN stated that it had started a rolling submission for COVAXIN, a COVID-19 candidate vaccine, co-developing with Bharat Biotech International Ltd. in the US Canadian markets.
• OCGN has been the target of class-action lawsuits filed by several legal firms. The lawsuits claim that the defendants failed to disclose to investors that the information submitted to the US Food and Drug Administration (FDA) was insufficient to warrant an Emergency Use Authorization (EUA).
• Stock is currently trading above its crucial short-term as well as long-term 50-day and 200-day SMA support levels.
• Stock is currently trading in the mid-band of the 52-week range of USD 0.25 to USD 18.77.
• OCGN's stock price has fallen by 20.47% and 28.11% in the past three and six months, respectively.

Technical Price Chart (as of September 01, 2021). Analysis by Kalkine

Conclusion: Considering the absence of revenues, widened losses, macroeconomic uncertainties, recent lawsuits, and technical indicators, we recommend a "Watch" rating on the stock at the closing price of USD 7.52, down 0.92% as of September 01, 2021.

*The reference data in this report has been partly sourced from REFINITIV.