Did things look bad for electric vehicle maker Polestar Automotive (NASDAQ:PSNY) recently? They sure did. Bad enough, in fact, to hit an all-time low. But today was a new day, and with that new day came new hope as Polestar bounced off that all-time low and looked toward recovery with some fresh analyst perspective.
The latest analyst perspective came out of Piper Sandler, via analyst Alexander Potter. Potter noted exactly what most would expect him to note: that Polestar is in a very competitive field right now and likely about to take a valuation “reset,” as some are calling it. However, Polestar is something of a special case, and should be treated accordingly. Potter points to two new SUV models launched that should draw attention in 2024, and into 2025. It’s also got a “respectable” track record as far as sales go, which contributes to the “patient” and “strategic” nature of current shareholders that should backstop potential losses.
There’s one other point that probably should have figured into Potter’s calculus: the incredible marketing potential Polestar has with it. One point in particular can lead the charge for Polestar’s marketing efforts: the Polestar 4. Recent benchmark testing discovered that the Polestar 4 actually has the lowest carbon footprint of all Polestar electric vehicles. Not bad by itself, but the Polestar 4 also boasts a hefty battery that gives it some real speed. It’s actually the fastest Polestar model released so far, which makes it a great potential headliner for marketing efforts to call attention to the new model.
Is Polestar a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on PSNY stock based on three Buys, one Hold and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average PSNY price target of $4.70 per share implies 130.96% upside potential.
