Goldman upgrades Nio to Neutral on cost reduction efforts

Goldman Sachs upgraded Nio (NIO) to Neutral from Sell with a price target of $3.80, up from $3.70. The firm believes management’s cost reduction efforts will help improve the company’s profit levels over the next three years by 4%-10%. Nio has been focusing on cost reduction through a series of cost control and efficiency improvement measures since March, and the measures should start showing positive impact on costs and profits starting from Q3, the analyst tells investors in a research note. Goldman, however, remains “relatively more conservative” on Nio’s fiscal 2025 sales volume compared to management’s target, largely due to the ongoing industry competitive intensity and overall demand outlook.