Citi analyst Jeff Chung has maintained their bullish stance on NIO stock, giving a Buy rating on March 21.
Jeff Chung’s rating is based on a combination of factors that suggest a positive outlook for Nio’s future performance. He anticipates that the company’s earnings will improve significantly from mid-second quarter of 2025, driven by the launch of several new vehicle models and enhanced cost control measures. This strategic move is expected to improve margins through better scale effects.
Additionally, Nio’s management has set ambitious volume targets for 2025, aiming to double year-over-year sales with the introduction of nine new models across its three brands. This expansion is supported by increased brand awareness and a more efficient sales network. Although there is an expected slight increase in capital expenditure due to these new launches and the establishment of a third factory, the impact on capital expenditure is expected to be limited. These factors contribute to Jeff Chung’s decision to maintain a Buy rating for Nio’s stock.
In another report released on March 21, Morgan Stanley also reiterated a Buy rating on the stock with a $5.90 price target.