Urban mobility solutions provider Niu Technologies (NIU) revealed that it sold about 252,998 E-scooters in the second quarter of 2021, up 58% from last year’s quarter. Of the total volume, about 97.2% were sold in China, marking 58.8% year-over-year growth.
The company said that sales in China were driven by new products launch and retail network expansion. Notably, Niu introduced four new products in April 2021 of which two models witnessed massive demand and deliveries in Q2.
Recovery from pandemic, especially in European and North American markets resulted in 34.8% year-over-year growth in the international markets. In spite of that, hurdles in international shipping was a headwind. (See Niu stock chart on TipRanks)
Niu remains focused on its fast retail network expansion, thus, added 450 new stores in China during the quarter. As of June 30, the company had 2,366 NIU stores in China.
Following the company’s earnings release, in an investors note on May 18, Needham analyst Vincent Yu assigned a Buy rating to the stock with a price target of $46, implying 47.4% upside potential from current levels.
Yu is of the opinion that shipping of new kick-scooter products internationally will begin from Q3. Also, the analyst expects store opening process to accelerate to more than 300 per quarter and the company will be able to reach its 1.1 million unit sales target by the year-end.
The stock has a Strong Buy consensus rating based on 3 unanimous Holds. The average Niu price target of $43.33 implies 38.8% upside potential from current levels.
NIU scores a 9 out of 10 on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market averages.
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