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Deutsche Bank clipped its price target on Polestar Automotive Holding UK PLC (NASDAQ:PSNY) on Monday after taking in the reduced outlook from the electric vehicle maker due to a PS3 launch delay and tougher macroeconomic climate.
Analyst Emmanuel Rosner noted Polestar (PSNY) delivered broadly in-line Q1 earnings underpinned by +12K unit deliveries in the quarter, but now only sees 60K to 70K units for 2023.
“Importantly, management noted that its ability to offset the lost P3 volume this year with improved Polestar 2 volumes is more muted given the waning macro backdrop, which creates a ton of uncertainty in terms of consumer demand particularly in the back half of the year. At the same time, the company has reiterated its plan to remain resilient with pricing through 2023, potentially limiting its volume upside this year as competitors continue to slash ASPs.”
Rosner warned on margin pressures for PSNY due to the lack of Polestar 3 volume and a negative mix headwind as more volume is pushed through the fleet channel. Other margin headwinds cited include retail customers opting for lower-trim options, and the need for Polestar to deploy more sales support to remain competitive as peers steadily reduce pricing.
Deutsche Bank lowered its price target on Hold-rated Polestar Automotive (PSNY) to $4 from $5.
Shares of Polestar (PSNY) moved up 1.21% in premarket action on Monday to $3.35.