Chinese electric vehicle (EV) maker Nio (NIO) recently reported mixed results for the second quarter of 2025. In reaction to the results, Freedom Broker analyst Dmitriy Pozdnyakov downgraded NIO stock to Hold from Buy but raised his price target to $6.50 from $4.90. He warned that the company’s latest outlook limits near-term upside.
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Notably, the company reported second-quarter sales of $2.65 billion, up 9% year-over-year but shy of the consensus estimate of $2.73 billion. Meanwhile, adjusted earnings per ADS came in at $0.32, just above the forecast of $0.31. On the deliveries front, the company reported 72,056 vehicles in Q2, up 25.6% year-over-year.
Looking ahead, the company expects to deliver 87,000 to 91,000 vehicles, representing growth of 41% to 47%. It also projects revenue of $3.04 billion to $3.19 billion, an increase of 16.8% to 22.5% from a year earlier.
Analyst Moves to the Sidelines on NIO Stock
Pozdnyakov said NIO posted strong growth in vehicle deliveries during the quarter, helped by the initial sales from its new FIREFLY sub-brand. However, he cautioned that the refresh of NIO’s models has driven the average selling price lower, putting pressure on margins.
The analyst highlighted NIO’s third-quarter delivery and revenue guidance, which came in well below Wall Street forecasts. While volumes are rising, he said weaker pricing and a softer outlook suggest profitability will remain under pressure.
Given these factors, Pozdnyakov raised his target price to reflect the recent recovery in the stock but said the downgrade to Hold was necessary. In his view, upside will stay limited until NIO can stabilize pricing and show clearer progress on earnings.
Is NIO Stock a Buy?
On TipRanks, Nio stock has a Moderate Buy consensus rating based on six Buys, six Holds, and one Sell rating. The average Nio price target of $5.90 implies 3.75% downside potential from current levels. Meanwhile, NIO stock has surged 40.6% so far this year.
