Mizuho Securities analyst Vijay Rakesh has maintained their neutral stance on NIO stock, giving a Hold rating today.
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Vijay Rakesh has given his Hold rating due to a combination of factors influencing Nio’s current market position. The company reported lower-than-expected revenue and earnings per share for the June quarter, and its guidance for the September quarter also fell short of consensus expectations. Despite this, Nio’s delivery guidance suggests a significant quarter-over-quarter increase, driven by the ramp-up of new models with lower average selling prices.
However, while there is an improvement in electric vehicle demand, particularly for the ES8 model, the ambitious delivery targets for the end of 2025 remain challenging. Nio’s valuation appears fair when compared to its peers, but the company faces margin pressures as it scales up production. Additionally, although Nio is expanding its capacity and introducing new models, competitive pressures and pricing challenges persist, which contribute to the Hold rating.
In another report released today, Bank of America Securities also reiterated a Hold rating on the stock with a $7.10 price target.