Citi started off coverage on Polestar Automotive Holding UK PLC ( NASDAQ: PSNY ) with a Buy/High Risk rating. The firm likes the setup for Polestar, but acknowledges near-term risks including F/X and commodity volatility.
Analyst Itay Michaeli and team regard Polestar as well-positioned to capture a healthy slice of the global premium EV revenue pool. The analysts said Polestar’s EV mindshare is notable.
Citi also likes the EV upstart's asset-light model given the existence of strong partners and evidence of start-up speed & innovation.
"Looking ahead, we see market share catalysts in the U.S. and China from the upcoming Polestar 3 and Polestar 4 launches."
Citi's price target on PSNY of $13 (+40% upside) assumes Polestar attains a ~6% market share of the available global revenue pool in 2030 with autonomous vehicles a potential source of upside.
Shares of PSNY traded flat on Wednesday at $8.94.
Earlier in the week, Deutsche Bank issued a positive appraisal on Polestar.
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Polestar Automotive attracts bull rating from Citi on potential to grab notable EV market share