2023-03-06 07:59:28 ET
Deutsche Bank kept a cautious view on Polestar Automotive Holding UK ( NASDAQ: PSNY ) on Monday with a Hold rating kept in place. While the electric vehicle maker delivered solid Q4 earnings and reaffirmed its deliveries guidance, analyst Emmanuel Rosner and team are on the lookout for additional funding needs.
"We view the volume target as fairly achievable in light of the 4Q exit rate, despite expected seasonal weakness in 1H and ongoing supply-chain disruption in the year, given PSNY is somewhat shielded from industry challenges through its contract manufacturing with Geely/Volvo. We note though that gross margin progression is a bit below expectations, coming in about flat YoY around 5%, reflecting lagged raw material headwinds and adverse geo mix especially earlier in the year."
The firm cut its price target to $7.00 from $9.00 vs. the 52-week trading range of $4.00 to $13.36.
Read the Polestar Automotive earnings call transcript.
For further details see:
Polestar Automotive is viewed cautiously by Deutsche Bank