Goldman Sachs analyst Tina Hou raised her price target on Chinese automaker NIO (NIO) stock to $7 from $4.30, while keeping a Neutral rating. The new price target still reflects a downside potential of about 2%. The analyst said NIO’s newer models — the L90 and ES8 — have shown better design and performance, helping sales rise over the past few months. However, she prefers to remain on the sidelines for now and wait for a better entry point.
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Goldman Highlights Sales Growth but Sees Little Near-Term Upside
Hou said NIO plans to launch two more models, the L80 and ES9, along with an updated ES7 in 2026. These new models should help keep sales momentum strong if they perform as well as the company’s recent launches.
She increased her 2026–2030 sales forecast by 6%–11%, expecting higher demand and better margins as NIO’s production scale improves. Hou now sees gross margins 2%–3% higher than before and expects NIO to reach break-even by 2028, a year earlier than her previous estimate.
Goldman also raised its free cash flow forecast for 2026–2030 to RMB 22 billion, up from RMB 11 billion earlier.
While Hou expects higher sales and stronger cash flow in the coming years, she kept a Neutral rating, noting that the stock has limited upside in the short term.
Is NIO a Buy, Sell, or Hold?
Overall, Wall Street has a Hold consensus rating on NIO stock based on seven Buys, five Holds, and one Sell assigned in the last three months. The average NIO stock price target of $6.72 implies 5.88% upside potential from current levels.
