Car manufacturer Volvo Cars has been very weak on the stock market after a series of profit warnings in the sector and concerns about the market for electric cars. The stock is also heavily shorted.

At the same time, Handelsbanken is going against the current, reports Dagens industri, Di. Their analyst Hampus Engellau believes in a price doubling for the car manufacturer.

"Volvo Cars is getting an undeserved beating," he tells the newspaper.

He believes that the market is too worried about the Chinese car tariffs. Soon the car that Volvo Cars makes in China, the EX30, will be able to be produced in Ghent, Belgium.

Handelsbanken's target price in three years is SEK 45, which basically means a doubling from the current level.