NIO Inc. (NYSE:NIO)

NIO Inc. (NYSE:NIO), which benefited from strong analyst commentary, defied the market trend on Tuesday by rising upward. The Chinese automaker’s stock has increased by more than 33% since its earnings day on September 7, adding to a roughly 75% increase since the price’s low point in March. There is yet more upside to come, according to analysts at Citi, Bernstein, Mizuho, and Bank of America, which have all renewed their “Buy” ratings on the company in the last week.

Nio Stock Outlook

As an illustration, Bank of America reported on Monday that its initial channel checks on non-refundable orders indicate a strong demand pattern, with more first-time and female consumers rushing to buy its new models. According to the bank’s analysts, “Based on current orders intake and consumers’ favorable comments on ET5, we expect a high possibility that ET5’s monthly new orders will exceed 9-10K/month as orders stabilize.” The analysts increased their volume sales forecasts for 2022, 2023, and 2024 by 1.3%, 5.6%, and 5.1%, respectively, based on the “solid model pipelines.” The price objective set by the bank also increased by $1, from $29 to $30.

While Vijay Rakesh, a Mizuho analyst, was more cautious about the third quarter trend, decreasing his EPS predictions and lowering his price objective from $48 to $42, he remained optimistic about the long-term prospects of the EV producer.

He reiterated a “Buy” rating after the most recent earnings report, telling clients that “despite short-term headwinds, we believe the stock remains well positioned with a multi-year EV adoption tailwind and market leadership in premium EVs in China, the largest EV market, and EU/Global expansion and mass market entry ahead.”

With the addition that NIO (NYSE:NIO) should “further gain market share from JV brands while the sector bottoms out” in the upcoming months, Citi essentially agreed in its own “Buy” rating reiteration.”

Of course, Citi’s analysts continued to be quite cautious about the possibility that further regional COVID-19 outbreaks may negatively impact trends in production and consumption. Bernstein raised similar issues, focusing on spending and profitability patterns that are less optimistic than the headline sales rise. Bernstein deviated from the Wall Street consensus “Strong Buy” recommendation by maintaining its Hold-equivalent rating and cutting its price objective to $25.

Learn more about how NIO intends to lessen the effects of chip restrictions.

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