Morgan Stanley analyst Tim Hsiao has raised his price target on Nio (NIO) stock to $6.50 from $5.90, while maintaining a Buy rating. The move reflects optimism about Nio’s restructuring efforts and strong early demand for its new Onvo brand. Also, the price target change signals the analyst’s long-term confidence in the company despite some near-term hurdles.
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Key Estimate Revisions
Hsiao trimmed his 2025 delivery forecast for Nio by 9% to 330,000 units, citing soft performance in the first half of the year. However, Hsiao kept his 2026 and 2027 volume estimates unchanged at 470,000 and 586,000 units, respectively, pointing to strong demand for Nio’s new Onvo L90 SUV.
Also, he increased 2026 and 2027 gross margin estimates by 0.2 percentage points, citing a shift in product mix toward more profitable models. It must be noted that the analyst left the 2025 margin estimates unchanged.
In a positive sign for profitability, the analyst cut Nio’s operating expense estimate for 2025 by 10%. This reflects the effectiveness of NIO’s ongoing restructuring and cost-cutting initiatives, including a reduction in its workforce. As a result, Hsiao has narrowed the net loss estimates by 8% in 2025, 13% in 2026, and 9% in 2027.
NIO to Report Q2 Results on September 2
Nio is set to report second-quarter earnings on September 2, which could offer more clarity on its restructuring progress and delivery momentum.
Currently, Wall Street analysts expect NIO to report a loss of $0.31 in Q2, flat year-over-year. Also, the company’s revenue for Q2 is expected to rise 13.3% from the prior-year quarter to $2.73 billion.
Is Nio a Buy, Sell, or Hold?
Overall, Wall Street has a Hold consensus rating on NIO stock, based on three Buys, seven Holds, and one Sell assigned in the last three months. The average NIO stock price target of $4.69 implies 7.56% downside potential from current levels.
