© Reuters. Citi resumes Polestar (PSNY) with Buy rating
By Michael Elkins
Swedish automaker, Polestar (NASDAQ:) is down 3.28% in mid-day trading on Wednesday after Citi resumed coverage of the company with a Buy/High-Risk rating and a $12.00 price target. Citi has also updated their model to reflect Polestar’s most recent quarterly results.
The Citi analysts wrote in a note “Overall, we have been encouraged by Polestar’s recent progress, including staying on track for 2022 volume goals (50k), controlling FCF burn, securing additional financing, and continuing its new product rollout plans (Polestar 3 & 4). We were also encouraged by management’s comments on the initial Polestar 3 reception.”
They also believe that the company’s progress suggests that the long-term story remains on track, though Citi has adjusted their gross margin ramp estimates to reflect ongoing macro/supply chain risks.
“We expect Polestar to hit breakeven FCF by 2025.” they continued.