Analyst Jeff Chung of Citi assigned a Buy rating on Nio, with a price target of $8.10.
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Jeff Chung’s rating is based on Nio’s promising outlook for the fourth quarter of 2025, where the company anticipates achieving a non-GAAP bottom-line breakeven. This expectation is supported by a projected delivery of 150,000 units and a gross profit margin of 16-17%. Additionally, the management’s strategy to maintain non-GAAP R&D expenses at RMB 2 billion and keep SG&A expenses within 10% of revenue further strengthens this outlook.
Moreover, Nio’s management has set ambitious production targets, aiming to enhance their monthly production capacity to 56,000 units. The demand for models like the L90 and ES8 has surpassed expectations, contributing to this positive forecast. The company’s long-term goal to achieve a group-level gross profit margin of 20% also indicates a strong potential for future growth, making the stock an attractive buy for investors.
In another report released yesterday, Mizuho Securities also upgraded the stock to a Buy with a $6.00 price target.