Bernstein Analyst Thinks EV Maker Polestar Should Go Private
Portfolio Pulse from Anan Ashraf
Bernstein analyst Daniel Roeska suggests that Polestar Automotive (PSNY) should go private, as it would be more beneficial within the Volvo Cars-Geely ecosystem. Bernstein initiated coverage with an 'underperform' rating and a target price of $1.15, a 44% downside. Polestar missed its delivery target for 2023 and expects break-even gross profit margins. The company reported a $735 million operating loss for the first nine months of 2023. Despite challenges, the CEO remains optimistic for 2024. Polestar's stock has fallen nearly 63% over the past year.
January 24, 2024 | 11:10 am
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Bernstein analyst recommends Polestar to go private and rates the stock as underperform with a target price of $1.15, indicating a significant downside. Polestar missed its delivery targets and reported substantial losses.
The recommendation by Bernstein to take Polestar private, coupled with an underperform rating and a target price suggesting a 44% downside, is likely to negatively impact investor sentiment and the stock price in the short term. The reported operating loss and missed delivery targets further substantiate the bearish outlook.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100