Earnings Release: Here's Why Analysts Cut Their Polestar Automotive Holding UK PLC (NASDAQ:PSNY) Price Target To US$17.50
There's been a major selloff in Polestar Automotive Holding UK PLC (NASDAQ:PSNY) shares in the week since it released its quarterly report, with the stock down 28% to US$9.21. Revenues were US$727m, and Polestar Automotive Holding UK was a dismal 17% short of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.
Taking into account the latest results, the consensus forecast from Polestar Automotive Holding UK's twin analysts is for revenues of US$3.17b in 2026. This reflects a modest 5.9% improvement in revenue compared to the last 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 97% to US$0.40. Before this earnings announcement, the analysts had been modelling revenues of US$3.71b and losses of US$8.83 per share in 2026. We can see there's definitely been a change in sentiment in this update, with the analysts administering a meaningful downgrade to next year's revenue estimates, while at the same time reducing their loss estimates.
Check out our latest analysis for Polestar Automotive Holding UK
The consensus price target fell 22% to US$17.50, with the dip in revenue estimates clearly souring sentiment, despite the forecast reduction in losses.
One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. The period to the end of 2026 brings more of the same, according to the analysts, with revenue forecast to display 12% growth on an annualised basis. That is in line with its 14% annual growth over the past five years. Juxtapose this against our data, which suggests that other companies (with analyst coverage) in the industry are forecast to see their revenues grow 14% per year. So although Polestar Automotive Holding UK is expected to maintain its revenue growth rate, it's only growing at about the rate of the wider industry.
The Bottom Line
The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. Sadly, they also downgraded their revenue forecasts, but the business is still expected to grow at roughly the same rate as the industry itself. Even so, earnings per share are more important to the intrinsic value of the business. The consensus price target fell measurably, with the analysts seemingly not reassured by the latest results, leading to a lower estimate of Polestar Automotive Holding UK's future valuation.
Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. At least one analyst has provided forecasts out to 2028, which can be seen for free on our platform here.
Plus, you should also learn about the 5 warning signs we've spotted with Polestar Automotive Holding UK (including 3 which are a bit unpleasant) .
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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.