01:30 PM EDT, 09/03/2025 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our 12-month target to $0.50 from $1, based on our DCF analysis. We cut our EPS estimates to -$0.85 from -$0.40 for 2025 and to -$0.50 from -$0.35 for 2026. In our view, risks surrounding PSNY remain high, as the company highlighted going concern risk and uncertainty on its ability to remain in compliance with its debt covenants in the earnings release, raising red flags. We note that PSNY's FCF has worsened significantly to -$787M in the first six months of 2025 (down from -$485M in the year-earlier period). PSNY continues to rely on short-term financings such as the $200M of equity issued in Q2 to finance operating and capital expenses. Like other upstart EV manufacturers, we think the primary challenge Polestar faces is achieving the size and scale with which to compete with larger automakers, noting a handful of bankruptcies among smaller EV manufacturers already. We see PSNY's struggles continuing as EV incentives are discontinued in the U.S. and as consumers increasingly turn toward hybrids.