Hong Kong-based carmaker NIO Inc.’s (HK:9866) stock has declined nearly 60% year-to-date. The intense competition in the EV (electric vehicles) space in China, a slowdown in global EV demand, and tariffs in Europe have hindered the company’s ambitious goals. Despite this, analysts remain moderately bullish on NIO stock, forecasting a potential rebound in share price. However, the stock may face pressure over the near term before experiencing gains.
Don't Miss our Black Friday Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
NIO is a prominent Chinese automotive firm known for its premium smart EVs.
NIO’s July EV Deliveries Top 20,000 Again
Recently, NIO reported its July delivery update, surpassing the mark of 20,000 sold vehicles for the third time in a row. The company sold 20,498 vehicles in July, marking a 3.35% decrease from the previous month but a 0.18% year-over-year increase. Year to date through July, NIO delivered 107,924 EVs, a 43.9% increase compared to the same period last year.
In comparison, BYD Co. Limited’s (HK:1211) EV sales dropped by 10% month-over-month to 130,000 units in July.
Moving forward, NIO is gearing up for the deliveries of the Onvo L60 SUVs in September. This lower-priced, mass-market SUV model will compete with Tesla’s (TSLA) Model Y and is expected to boost the company’s sales significantly.
Analysts’ Ratings
In June, NIO’s Hong Kong-listed shares received three ratings, including two Holds and one Buy recommendation. Jefferies and Macquarie confirmed their Hold ratings, predicting an upside of 35% and 40%, respectively.
Meanwhile, analyst Rachel Miu from DBS remains bullish on Nio stock with a Buy rating. DBS expects the company’s vehicle margin in FY24 to improve to 13.5% from 9.5% last year, driven by higher sales and a more stable cost structure.
Miu is optimistic about the company’s Onvo L60 SUV and expects it to boost the company’s fourth-quarter sales. DBS projects NIO’s sales volume to hit 216,000 in FY24, representing a 35% year-over-year increase.
Is NIO a Buy Right Now?
As per the consensus among analysts on TipRanks, 9866 stock has been assigned a Moderate Buy rating. The NIO share price target is HK$41.25, which implies an upside of 37.7% from the current price level.
