Deutsche Bank analyst Emmanuel Rosner initiated Monday coverage on Polestar 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”.
In addition, Rosner adds that it allows the company to “focus on design, expansion and brand building. Unlike many other electric vehicle startups, Polestar has already delivered more than 50,000 vehicles worldwide since its start of production last year, the analyst enhanced.” The Fly reported.
Polestar’s common stock began trading on Nasdaq on Jun 24 under the new ticker symbol “PSNY” after the merger with Gores Guggenheim. On Friday, the stock price closed 1.14% higher at $8.89 representing a market cap value of $18.80 billion.
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Last week, the Swedish pension company AMF filed a 13F-HR form disclosing ownership of 4,400,440 shares of Polestar by the end of the second quarter with total holdings valued at $38.768 million.
Polestar will expand to Italy opening the first showroom in the country amid the global expansion to a total of 30 markets by the end of 2023. The Space — as the showrooms are known — will be located in downtown Milan and the second one will inaugurate in Rome in early 2023.
Earlier this month, the EV maker opened its first showroom in Spain located at Paseo de Gracia, 84 in Barcelona and the inauguration counted with the presence of Stephane Le Guevel, the Managing Director of Polestar Iberia.
In late May, Polestar opened its first showroom in Dubai located at Mall of Emirates, an iconic shopping center with a total of 560 luxurious boutiques. During the last weeks, the EV maker has been expanding at a high pace confirming the entrance to Portugal, Spain, Dubai, and upcoming Italy.
Recently, the company announced a collaboration agreement with Arval in Spain for leasing services. Arval, part of the BNP Paribas Group, will become Polestar’s global leasing service provider in Spain after arriving in the country in 1996.