Is now the time to buy shares of Chinese electric vehicle maker Nio (NYSE:NIO)?
It’s a question a lot of investors — and analysts — are asking after NIO stock hit a new 52-week low of $22.53 yesterday amid ongoing market volatility. Now down 60% over the last 12 months, many analysts are saying shares are a screaming buy, especially after Nio announced a record-breaking 25,034 deliveries in the fourth quarter of last year. It also reported a record 91,429 delivered for all of 2021, which was a 109% increase from 2020.
Among 25 analysts who cover Nio, the median price target on the beaten-down stock is currently $58.65, which is 166% higher than the current share price. Here is a look at what specific analysts have to say about the stock and their price predictions for NIO shares.
- Macquarie has a “buy” rating on Nio and has set a $37.70 price target on the shares, which is 70% higher than current levels.
- HSBC has a “buy” rating on NIO stock and a $54 price target, implying 140% upside.
- Bank of America also has a “buy” rating on the stock but has set its price target at $65, which is 190% higher than where the shares currently sit.
- Mizuho Securities also has a “buy” rating on NIO stock and a $65 price target.
Why It Matters
Wall Street clearly thinks that NIO stock is oversold and undervalued at its current price, especially given the company’s big delivery numbers and current European expansion plans.
The expansion and record delivery numbers led Nio revenues to grow 117% to $1.52 billion in the third quarter, while its vehicle margins hit 18%, up from 14.5% a year earlier.
What’s Next for NIO Stock
Nio stock could continue to fall in the near term along with other Chinese and electric vehicle stocks. American rival Tesla (NASDAQ:TSLA) has also reported strong numbers but its stock is down 22% year to date at $937.41 a share. However, long term, NIO is set up for a big rally from its current depths, according to the forecasts of professional analysts.
On the date of publication, Joel Baglole did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.