-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We lower our 12-month target to $5 from $8, based on our DCF analysis and implying a premium to tangible book value. Our adjusted EBITDA estimates decline modestly on lower volume and higher cost assumptions, as we now assume PSNY's sales volume increases only 3% in 2026. PSNY's Q4 net loss of -$799M was well short of the -$452M consensus, but up from -$1,183M in Q4 2024. More importantly, looking ahead, management's guidance was cautious, although it still expects its global retail sales volumes to increase by low double digits over 2025 sales of 60,119 vehicles. We think this guidance is likely to prove aggressive considering slowing global EV sales growth. Regardless, shares have outperformed recently despite a December 1-for-30 reverse stock split, and we expect cash burn to remain high, raising the risk of a restructuring absent additional lifelines from Volvo/Geely Automobile Holdings Ltd. (175 HK 25 ****) or others. We forecast free cash flow of -$1.2B in 2026 after posting -$1.37B in 2025.