5 Cheap Small-Cap Stocks to Buy Before the Next Breakout

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1. Oatly Group AB (NASDAQ:OTLY)

Number of Hedge Fund Holders: 12

Share Price as of December 7: $1.63

Oatly Group AB (NASDAQ:OTLY) is a Malmö, Sweden-based food company that produces dairy products from oats.

In a note issued to investors on November 16, Nik Modi at RBC Capital gave Oatly Group AB (NASDAQ:OTLY) stock an Outperform rating with a target price of $7. The analyst appreciated the Oatly Group AB’s (NASDAQ:OTLY) efforts to shift its focus to a hybrid production model to improve the company’s financial health. During Q4 2022, Oatly Group AB’s (NASDAQ:OTLY) production facility came online in New Jersey. This is expected to increase the annual production run rate to 900 million liters as opposed to 496 million liters at the end of Q3 20222. Furthermore, the outstanding debt of the company stood at only $4.4 million as of Q3 2022, providing management the freedom to increase leverage to build up its operations. In Q3 2022, Oatly Group AB (NASDAQ:OTLY) observed a 16% YoY increase in sales and saw strong growth in demand across multiple categories.

As of Q3 2022, Oatly Group AB (NASDAQ:OTLY) was held by 12 hedge funds.

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