Car manufacturer Volvo Cars’ battered stock may experience some relief after the company announced at its quarterly report that it is reviewing its holdings in Polestar. That is what the major bank UBS writes in an analysis.
Volvo Cars’ stock has had a tough period since its IPO in 2021. Today, sentiment seems to have improved somewhat after the company announced that it is reviewing its holdings in the electric car manufacturer Polestar. Before lunch, the share is up 22 percent to SEK 33.34.
UBS has a sell recommendation on Volvo Cars with a target price of SEK 32. These are under evaluation following today’s announcement.
In an analysis, UBS highlights that a relief is possible after the information about the review. Volvo Cars also reiterated its goal of an EBIT margin above 8 percent for 2026 and that sales growth for 2024 is expected to be higher compared to 2023.
Volvo Cars also came out with its interim report for Q4 2023. Net sales came in line with expectations. The profit after tax attributable to the parent company’s shareholders was SEK 3.1 billion (2.5). Analyst consensus according to Bloombeg was SEK 3.8 billion.
In American trading, Polestar’s shares fell 0.5 percent. Last week, the company announced a new round of redundancies, which means that 15 percent of the total workforce is being notified.
