NIO Stock Just Got Slammed With Several Price Target Downgrades

  • Several firms lowered their price target on Nio (NIO) stock following earnings.
  • The EV maker reported revenue of $1.54 billion and an EPS loss of 25 cents.
  • Shares of NIO stock are down more than 45% year-to-date.
NIO stock - NIO Stock Just Got Slammed With Several Price Target Downgrades

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Nio (NYSE:NIO) reported earnings this week, and it appears that analysts were not too impressed. The Chinese electric vehicle (EV) maker received at least four price target reductions from firms including JP Morgan, Citi and Mizuho Securities. For the quarter, revenue tallied in at $1.54 billion, up 21.8% year-over-year (YOY) and beating the analyst expectation of $1.42 billion. However, the earnings per share (EPS) loss of 25 cents fell below expectations for a loss of 18 cents.

Quarterly deliveries came in below expectations as well. Nio expects to deliver between 31,000 and 33,000 vehicles in Q3, while analysts forecasted 37,000 deliveries. At the midpoint, the delivery figure would imply around 11,000 deliveries in September, while analysts were projecting 17,000 deliveries for that month. Meanwhile, revenue for the third quarter is expected to be between $1.91 billion and $2.03 billion, implying YOY growth of between 31% and 38.7%.

With that in mind, let’s dive into the analyst price target reductions of NIO stock.

NIO Stock Downgraded By Several Analysts

JPMorgan analyst Nick Lai reiterated his “overweight” rating but lowered his price target to $25 from $30. Lai characterized Nio’s earnings as a “mixed bag,” highlighting a weak bottom line and guidance. On the bright side, vehicle gross profit margins were higher than expected. The analyst also visited several Chinese EV showrooms and concluded that there is heavy demand for Nio vehicles, with all models having a wait time of at least three months. As a result, shares of NIO may be “bottoming out.”

Meanwhile, Mizuho Securities analyst Vijay Rakesh lowered his price target to $42 from $48 and maintained a “buy” rating. For the full year, he expects around 137,000 deliveries. For next year, he raised his delivery expectations to 243,000 vehicles, up from 232,000. Rakesh highlights the successful ramp up of the ET7 and ES7 models and points out that ET5 deliveries will begin this month. The analyst added: “We believe NIO sees its European expansion on track, remaining focused on entering Germany, Denmark, Norway, and the Netherlands.”

On top of that, Citi analyst Jeff Chung maintained his “buy” rating and lowered the price target to $31.30 from $41.10. US Tiger Securities analyst Bo Pei maintained a “buy” rating and lowered his price target to $32 from $35.

On the date of publication, Eddie Pan did not hold (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.

Eddie Pan specializes in institutional investments and insider activity. He writes for InvestorPlace’s Today’s Market team, which centers on the latest news involving popular stocks.


Article printed from InvestorPlace Media, https://investorplace.com/2022/09/nio-stock-just-got-slammed-with-several-price-target-downgrades/.

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