Nio price target lowered by $2 at BofA, here’s why

BofA analyst Ming Hsun Lee lowered the firm’s price target on Nio to $11 from $13 and keeps a Buy rating on the shares after the company reported a Q3 beat on product mix change and lower discount/promotion, while its operating expense ratio came in lower than the firm’s expectation as Nio cut some battery-related R&D expense. Following the report, the firm lowered its 2023-25 volume sales forecasts by 7%, 17% and 7%, respectively, as it factors in lower-than-expected Q4 delivery guidance, but lower net loss estimates in 2023-25 given GPM improvement and operating expense cuts.