
Oatly Faces Rising Interest-Rate Risk From Floating Debt and Potentially Imperfect Hedging

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Oatly Group AB (OTLY) has revealed a risk related to its floating-rate debt, including Nordic Bonds and SSRCF linked to 3m STIBOR. This exposure could lead to increased interest costs if reference rates rise, affecting cash flow for investments and liquidity. Although Oatly may use interest rate derivatives to hedge, these strategies may not fully mitigate risks and depend on accurate forecasts. The average stock price target for OTLY is $14.75, indicating a potential upside of 42.79%.
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