Positive Outlook for Nio: Buy Rating Backed by Recovery in Margins and Strategic Advancements

Citi analyst Jeff Chung has maintained their bullish stance on NIO stock, giving a Buy rating yesterday.

Jeff Chung has given his Buy rating due to a combination of factors that suggest a positive outlook for Nio’s financial performance. The management’s guidance indicates a recovery in gross margins to double digits by the second quarter of 2025, with a target to break even by the fourth quarter. This improvement is supported by the launch of updated models and an expected increase in delivery volumes.
Operationally, Nio is focusing on advancements such as the Nio World Model for second-generation vehicles and enhancements in safety and parking features. Additionally, the expansion of battery swap networks and ongoing cost optimization efforts are expected to contribute to better financial outcomes. The anticipated growth in sales volumes for new models further supports the optimistic projection of a 129.5% expected share price return.

In another report released yesterday, Morgan Stanley also reiterated a Buy rating on the stock with a $5.90 price target.