While China competition remains strong, the firm says June quarter deliveries guidance is stronger with 2025 model year refreshes and brands Onvo and Firefly continuing to ramp, Mizuho said, while adding that it sees Nio as fairly valued.

Multiple brokerages lowered their price target on Chinese EV maker Nio Inc. (NIO) after the company reported disappointing first-quarter earnings on Tuesday.

The firm reported total revenue of RMB12.03 billion ($1.67 billion), representing an increase of 21.5% year-over-year (YoY), but below an analyst estimate of RMB12.46 billion, as per Finchat data.

Adjusted and diluted net loss per share was RMB3.01, compared with a loss of RMB2.39 in the first quarter of 2024, and higher than the expected loss of RMB2.38.

Subsequently, Mizuho lowered the firm's price target on Nio to $3.50 from $4 while keeping a ‘Neutral’ rating on the shares. The new price target represents a 13% upside to the stock’s closing price on Tuesday.

While Chinese competition remains strong, the firm says Nio’s June quarter delivery guidance is stronger, with 2025 model year refreshes and brands Onvo and Firefly continuing to ramp up. It sees Nio as fairly valued.

For the second quarter, Nio expects to deliver between 72,000 and 75,000 vehicles, representing a year-on-year growth of 25.5% to 30.7%.

Barclays, meanwhile, lowered its price target on Nio to $3 from $4 while keeping an ‘Underweight’ rating on the shares.

The company's Q1 revenue came in below estimates and missed guidance, primarily due to lower selling prices resulting from higher promotions for inventory clearance of old Nio models and an increased product mix of the ONVO brand, the analyst told investors in a research note.

The firm opined that achieving volume scale is fundamental to Nio improving margins and that the 50,000 monthly units target by year-end appears challenging, especially amid intensifying competition in China.

Bank of America (BofA) also lowered the firm's price target on Nio to $4.30 from $4.90 and kept a ‘Neutral’ rating on the shares following the Q1 miss.

On Stocktwits, retail sentiment around Nio turned from ‘bullish’ to ‘extremely bullish’ over the past 24 hours while message volume remains ‘high’.

NIO's Sentiment Meter and Message Volume as of 8:20 a.m. ET on June 4, 2025 | Source: Stocktwits

NIO stock is down by 22% this year and by about 32% over the past 12 months.

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