01:50 PM EDT, 04/30/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lift our 12-month target by $0.10 to $1.30, calculated using an EV/sales multiple of 1.2x (up from 1.1x) our 2024 sales estimate of $847M (up from $843M). Our revised multiple reflects improving sales and margins, including share gains in Europe and North America. Sales in Greater China are soft, but this is mainly due to OTLY cutting low-margin products in this region. We lower our 2024 EPS to -$0.27 from -$0.22 and 2025's to -$0.14 from -$0.08. Q1 adj-EBITDA of -$13M beat the -$23M consensus on revenues of $199M (+1.8% Y/Y), $1.5M above consensus. The highlight was a gross margin of 27.1% (+970 bps Y/Y), the highest in three years. OTLY kept its guidance unchanged, but we think a raise could be in store next quarter. Momentum is building for OTLY, as sales and profits are moving in the right direction. Free cash flow was -$45M in Q1 vs. -$31M in Q4, but should improve in Q2 from working capital improvements. We would like to see more consistent execution before becoming more constructive on the shares.