Piper Sandler increased NIO’s stock price target to $14 (4.8% upside potential) from $4 and reiterated a Hold rating, saying that the electric car maker reported “generally solid” 2Q results.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Piper Sandler analyst Alexander Potter wrote in an investor note on Wednesday that NIO (NIO) “has a chance to earn the Tesla of China moniker” adding that “none of the newly-emerging electric vehicle companies, except Tesla (TSLA), can match NIO’s track record”. Potter noted that, “the company may attempt to internalize core capabilities over time due to over-reliance on partners”.
On Aug. 11, NIO reported that 2Q revenues jumped 146.5% to RMB 3,719 million year-on-year, beating analysts’ expectations of RMB 3,182 million. The company’s top-line results mainly benefited from an almost three-fold jump in vehicle deliveries. During the quarter, the electric car maker shipped 10,331 units compared to the 3,553 units it delivered in the year-ago quarter.
Currently, Wall Street analysts are sidelined on the stock. The Hold consensus is based on 3 Holds, 2 Buys and 2 Sells. Following this year’s 232% rally, the average price target of $10.28 implies downside potential of 23.1%. (See NIO stock analysis on TipRanks).
Related Links:
Deutsche Bank Cuts Micron To Hold Amid Lower Memory Pricing Bet
Lyft On Track To Hit Profitability Goal By 2021 Despite 61% Sales Hit
Gabelli Cuts Zoetis To Hold On Valuation