Nio Stock Declines After Multiple Price Target Reductions – But Retail’s Positive
According to TheFly, Mizuho noted that Nio shares are fairly valued at current levels and added that the company’s guidance for deliveries in the first quarter is “weak” owing to seasonality and weaker than expected Onvo deliveries.
FollowShares of Chinese EV maker Nio Inc. (NIO) traded nearly 3% lower on Monday noon after Mizuho reduced its price target on the stock from $5 to $4.2 while keeping a ‘Neutral’ rating.
According to TheFly, Mizuho noted that Nio shares are fairly valued at current levels and added that the company’s guidance for deliveries in the first quarter is “weak” owing to seasonality and weaker than expected Onvo deliveries.
Nio said on Friday that it expects vehicle deliveries in the first quarter of 2025 to be between 41,000 and 43,000, representing an increase of up to 43.1% from the same quarter of 2024. In the fourth quarter (Q4) of 2024, the company delivered 72,689 units, marking a jump of 45% year-on-year.
Mizuho’s reduction in Nio price target follows price target cuts from other brokerages.
Citi reduced its price target on the stock from $8.9 to $8.1 while keeping a ‘Buy’ rating on the shares.
The brokerage said it expects the company’s Q1 vehicle margin to decline quarter-on-quarter to 11-12% due to lower car sales. The firm, however, sees earnings improvements for Nio to kick in from mid-Q2, given new model launches.
Bank of America also lowered its price target on Nio to $4.9 from $5 on Friday while keeping a ‘Neutral’ rating on the shares after the company reported Q4 earnings below estimates.
Nio reported a total revenue of RMB19.70 billion ($2.69 billion), which marked a 15.2% increase from the corresponding quarter of 2023 but fell below an analyst estimate of RMB20.19 billion, per FinChat data.
The net loss during the three months widened to RMB7.11 billion.
On Stocktwits, retail sentiment about the stock rose marginally within the ‘bullish’ territory (59/100) while message volume remained ‘high’ over the past 24 hours.
NIO’s Sentiment Meter and Message Volume as of 11:15 a.m. ET on March 24, 2025 | Source: Stocktwits
A Stocktwits user opined that Citi is still eyeing over $8 for Nio despite the price target reduction, implying that the brokerage is bullish.
Nio shares are down by over 3% this year and over 10% over the past 12 months.
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