Why Investors Hit the Brakes on Polestar Stock Today
Although electric vehicle (EV) company Polestar (NASDAQ: PSNY) has seen notable improvements in its operations lately, Wednesday saw its stock hit with a big sell-off. On the back of a fresh analyst price target cut, the company's shares took a nearly 12% hit to their price, a more precipitous decline than the 0.2% drop of the benchmark S 500 index.
The party behind the reduction was Piper Sandler's Alex Potter. Before market open on Wednesday, Potter shaved $0.50 per share from his Polestar price target, leaving it at a new level of $1.50. This didn't affect his recommendation on the EV stock, however, which he maintained as "neutral."
Although Polestar seems to be stabilizing in certain ways -- the company recently regained compliance with listing requirements, and managed to compile and publish its second-quarter earnings -- sales volumes are cause for concern. In light of that, Potter has trimmed his estimates for overall volumes in the first half of this year.
Source Fool.com
