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Research Alert: CFRA Reiterates Strong Sell On Shares Of Polestar Automotive Holding Uk Plc

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-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

We maintain a 12-month target of $5, based on our DCF analysis and implying a premium to tangible book value. After updating our estimates and adjusting for its recent equity and debt-to-equity transactions, our adjusted EPS estimates decline to -$12.30 from -$0.55 for 2026 and to -$9.30 from -$0.45 for 2027. PSNY posted Q1 net income of -$383M, down from -$166M in Q1 2025. Revenue was flat at $633M ($116M below consensus) as lower prices offset a 7% increase in total vehicle sales to 13,126 units. Adjusted EBITDA of -$235M was down from -$96M a year ago. In our view, risks surrounding PSNY remain high. Like other upstart EV manufacturers, we think the primary challenge it faces is achieving the size and scale to compete with larger automakers, noting the number of measures it has recently taken to secure additional liquidity and its significant cash burn. Moreover, we think it could be challenged to hit its 2026 vehicle sales guidance, namely a low double-digit increase over 2025 sales of 60,119 vehicles.

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