Nio Inc. (NIO) stock jumped about 8% on Thursday after the Chinese EV maker launched its new flagship SUV under the Onvo sub-brand. Following the announcement, in a new note today, Macquarie’s Top analyst Eugene Hsiao upgraded the stock to Buy from Neutral and raised the 12-month price target to $5.5 from $3.9, reflecting renewed confidence in the Chinese EV maker’s product strategy. The new price target suggests a 12% upside from current levels.
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It is worth noting that Hsiao ranks 648 out of more than 9,900 analysts tracked by TipRanks. He has a success rate of 72%, with an average return per rating of 38.50% over a one-year timeframe.
Why This Analyst Sees More Upside for Nio
According to Hsiao, Nio’s newly launched L90 SUV could be a game-changer. Priced at RMB 265,800 (about $36,940), the six-seat electric SUV is competitively positioned near the five-seat Tesla (TSLA) Model Y. Hsiao believes this pricing makes the L90 Nio’s strongest offering to date in terms of value.
Hsiao also sees the L90 as a strong competitor to Li Auto’s (LI) lineup, pointing out that despite being priced nearly 17% lower than the Li i8, it still delivers many of the same premium features.
Looking ahead, the analyst now expects a meaningful boost in Nio’s sales volumes. He has now raised his delivery estimates to 347,000 units for Fiscal 2025 and 500,000 for 2026, reflecting his belief that the new SUV could boost demand and help Nio grow in China’s crowded EV market.
Is Nio a Buy, Sell, or Hold?
Overall, Wall Street has a Hold consensus rating on NIO stock based on three Buys, five Holds, and one Sell assigned in the last three months. The average NIO stock price target of $4.68 implies 3.90% downside potential from current levels.
