Written by Cláudio Afonso | LinkedIn | X
Citi analyst Itay Michaeli lowered the firm’s price target on Polestar shares to $1.10 from $1.70 per share on Monday while maintaining a Neutral rating.
On Friday, the stock jumped 9.35 percent closing at $0.973 per share resulting in a market cap slightly above $2 billion. Based on that, the new price target implies an upside potential of 13 percent.
In a new research note, the analyst updated the company’s model following recent financial disclosures and outlook, including the first quarter results — as initially reported by The Fly.
Despite considering the recent pullback in shares being “somewhat tempting” due to Polestar’s new product momentum and cost-cutting initiatives, Citi seeks greater confidence in the gross margin outlook and free cash flow usage amidst recent headwinds from tariffs and electric vehicle price pressures.
In mid-May, Citi had previously reduced the target price from $2.50 to $1.70, indicating a further adjustment would follow Polestar’s annual report for 2023.
Polestar registered 660 vehicles in the United Kingdom during June, resulting in a year on year drop of 41.33 percent (from 1,125 units) and a month over month recover from the 314 vehicles registered in May 2024, according to the latest figures from the Society of Motor Manufacturers and Traders (SMMT).
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Earlier in the week, the company reported global deliveries of “approximately 13,000” units in the second quarter of the year. The result represents a growth of about 80 percent from the first three months of the year and takes Polestar’s year-to-date deliveries to 20,200 vehicles.
Last week, the company delivered the first units of the Polestar 3 at its headquarters in Gothenburg, Sweden. Earlier in the day, the company said it would start offering a new entry-level variant for the SUV with the introduction of a new Long Range Single Motor variant.
The brand’s first fully electric model, Polestar 2, has now a refreshed version, featuring design updates, a revamped pack structure, increased range, and more individual options.
Since the launch of the first iteration, the company has delivered more than 160,000 units across 27 markets.
Written by Cláudio Afonso | LinkedIn | X
