Shares of electric scooter maker Niu Technologies (NASDAQ:NIU) are tanking in the pre-market session today after the company announced fourth-quarter numbers.
Revenue dropped 37.9% year-over-year to RMB 612.3 million. While the company had posted a net income of RMB 60.2 million in the year-ago period, for Q4 2022 it posted an adjusted net loss of RMB 26.2 million.
During the quarter, e-scooter sales dropped 41.9% year-over-year to 138,279. Further, e-scooter sales in China too witnessed a 42.5% decline. While consumer sentiment remains weak, the company expects a return to growth in 2023.
Looking ahead, for 2023, the company expects sales volume to hover between 1 million and 1.2 million units. This implies growth in the range of 20% to 45%.
Overall, Wall Street has a consensus price target of $5.90 on NIU, implying a hefty 48.2% potential upside in the stock. That’s after a 28% slide in NIU shares so far this year.
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