Nio (NYSE:NIO) stock slid lower on Thursday after the EV company’s shares were hit with a downgrade from JPMorgan analyst Nick Lai.
The JPMorgan analyst bumped NIO stock down from an “overweight” rating to a “neutral” rating. For the record, the analysts’ consensus rating for NIO shares is “moderate buy.” That’s based on 12 analysts’ opinions.
Alongside that downgrade comes a new price target for NIO stock. The firm dropped its price target for the EV company’s shares from $14 each to $10 each. That still represents a 13.3% upside from its prior closing price. For comparison, the analysts’ consensus price target for NIO shares is $18.98.
What’s Behind the NIO Stock Downgrade
Here’s what the JPMorgan analyst said about Nio in a letter to clients obtained by CNBC:
“We believe the stock will likely trade sideways in the near term and we would reassess a potential inflection point in mid-late 2Q23, depending on the magnitude of sequential volume and margin improvement where we are directionally positive yet cautious given street expectations are too high, which leaves surprise bias more to the downside than upside, in our view.”
Following today’s downgrade, shares of NIO stock are down nearly 2%. The EV company’s stock is also down 10% since the start of the year. Trading is also somewhat light, with about 25 million shares on the move. The company’s daily average is around 46 million shares.
Investors seeking our more of the latest stock market news will want to stick around!
We’ve got more of the hottest stock market news worth knowing about on Thursday! That includes what’s happening with shares of Bed Bath & Beyond (NASDAQ:BBBY), Okta (NASDAQ:OKTA), and AMC Entertainment (NYSE:AMC) stock today. You can catch up on that news at the following links!
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On the date of publication, William White 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.
