Citi analyst Itay Michaeli initiated coverage on Polestar shares with a Buy rating and a price target of $13, an upside potential of 38.6% based on Friday’s closing price.
Michaeli expects the company led by Thomas Ingenlath to reach a ~6% market share of the global revenue pool available by 2030, with autonomous vehicles being a potential source of upside.
The analyst enhanced the company’s asset-light model “given the existence of strong partners and evidence of start-up speed & innovation”.
Michaeli said the Swedish EV maker is well positioned to capture “a healthy slice of the global premium EV revenue pool” considering the upcoming models Polestar 3 and 4 as catalysts in the United States and China.
“Looking ahead, we see market share catalysts in the U.S. and China from the upcoming Polestar 3 and Polestar 4 launches,” Michaeli said.
Earlier in the week, also Deutsche Bank analyst Emmanuel Rosner initiated coverage on the shares with a Hold rating and a $10 price target representing an upside potential of 12.48% on the shares.
The analyst said the “intimate partnership” between the Swedish EV maker with Geely and Volvo creates “an asset-light business model, speeding time to market, reducing manufacturing and supply risk”.
According to the 13F-HR forms filed Thursday, BNP Paribas Asset Management Holding sold 87.58% of its stake in NIO (274,700 shares) and added nearly 3.4 million Polestar shares in late June, when the Swedish manufacturer closed the merger process with Gores Guggenheim.
On July 21, Polestar signed a collaboration agreement with Arval in Spain for its leasing services. Arval is part of the BNP Paribas Group and will become Polestar’s global leasing service provider in Spain after arriving in the country in 1996. As of June 2022, the company has currently more than 200,000 vehicles on the road and is the leading national operator.