Nio (NYSE:NIO) stock is down about 52% year-to-date. Shares of this Chinese EV (electric vehicle) maker are now trading in penny-stock (learn more about penny stocks here) territory. The competitive environment and pricing issues weighed on its share price. Despite this significant drop, Nio stock could continue to remain under pressure in 2024.
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However, Nio’s management remains optimistic and projects sequential improvements in vehicle margins. They expect a return to double-digit margins by Q2, with further improvement in Q3 and Q4. Nevertheless, Nio believes that increasing competition in the EV space will continue to pose challenges.
Investor Sentiment Remains Negative
Individual investors have a Very Negative view of the company, given that in the last 30 days, the number of portfolios (tracked by TipRanks) holding the stock decreased by 3.8%. This suggests that these investors are reducing their exposure to Nio amid macro headwinds.
Overall, among the 742,848 portfolios monitored by TipRanks, 3.9% have invested in Nio stock.
Learn more about TipRanks’ powerful Investor Sentiment tool here.
Is NIO a Buy or Sell Today?
Citi analyst Jeff Chung is bullish about NIO stock. However, Chug lowered the price target to $8.50 from $10.40 on June 6. The analyst expects Nio to benefit from improved sales momentum and new model launches.
Conversely, Barclays analyst Jiong Shao is bearish on Nio stock. He set a price target of $4, suggesting the stock could drop further. Shao points to higher expenses and lower selling prices as the primary reasons for his pessimistic outlook.
Overall, Wall Street analysts are cautiously optimistic about Nio stock. Nio stock has five Buy, six Hold, and one Sell recommendations for a Moderate Buy consensus rating. The analysts’ NIO stock price target is $6.19, implying 41% upside potential from current levels.
Bottom Line
Nio stock faces competitive headwinds, which could hurt its financials and share price in the short term. While analysts have mixed opinions about Nio stock, investors can use TipRanks’ penny stock screener to find top-rated penny stocks.
