Tim Hsiao, an analyst from Morgan Stanley, maintained the Buy rating on Nio. The associated price target was raised to $6.50.
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Tim Hsiao has given his Buy rating due to a combination of factors including the expectation of a meaningful volume recovery in 2026, driven by strong order intake for the Onvo L90 model. Despite a reduction in the 2025 volume estimate, the projections for 2026 and 2027 remain robust, indicating confidence in the company’s future performance.
Additionally, the slight increase in gross margin estimates for 2026-27 and the reduction in operating expenses for 2025 contribute to a more favorable financial outlook. The narrowing of net loss estimates over the next few years further supports the positive sentiment. Consequently, the base-case scenario value has risen by 10%, reflecting an improved risk-reward profile for Nio’s stock.
Hsiao covers the Consumer Cyclical sector, focusing on stocks such as Nio, XPeng, Inc. ADR, and XPeng, Inc. Class A. According to TipRanks, Hsiao has an average return of 0.3% and a 43.44% success rate on recommended stocks.