Nio Stock (NIO:NSD) Analysts are Bullish with a Strong Buy rating

STA Research
by: STA Research
NIO Stock

Nio stock forecasts from 7 investment analysts, sees the average target price for Nio Inc. at $35.93 per share over the next 12 months. Nio Inc. average analyst rating is Strong Buy. Stock Target Advisor’s own stock analysis of Nio Inc Class A ADR is Slightly Bearish, which is based on 4 positive signals and 5 negative signals. Nio Inc’s stock price has currently lost over 70 percent so far this year, which is one of the worst performers in its sector.

About Nio Inc.

NIO Inc. designs, develops, manufactures, and sells intelligent electric vehicles in China. It provides electric SUVs with five, six, and seven seats in addition to smart electric sedans. The company also develops design and technology, manufactures e-powertrains, battery packs, and components, and manages sales and after-sales activities. Additionally, it provides its clients with energy and service bundles. Additional power solutions offered by the business include Power Home, a home charging solution, Power Swap, a battery swapping service, Power Charger, a fast-charging solution, Power Mobile, a mobile charging service via charging vans, Power Map, an application that provides access to a network of public chargers and their real-time information, and One Click for Power valet service, where it provides vehicle pick-up, charging, and swapping services. Through its NIO service centres and authorized third-party service centres, the firm also provides courtesy cars, roadside assistance, data packages, auto financing, and financial leasing options in addition to repair, maintenance, and bodywork services. Additionally, it provides insurance for vehicle damage, statutory liability insurance, and third-party responsibility. Additionally, it offers NIO Certified, an inspection, evaluation, buy, and sales service for used cars. The company, which was formerly known as NextEV Inc., changed its name to NIO Inc. in July 2017. NIO Inc. was established in 2014 and has its corporate headquarters in Shanghai, China.

 

News:

In its most recent 13F filing with the Securities and Exchange Commission, Sumitomo Mitsui Trust Holdings Inc. disclosed that during the second quarter it increased its holdings in Nio Inc – (NYSE:NIO – Get Rating) by 1.8%. After acquiring an additional 58,259 shares over the course of the time, the fund now owns 3,275,134 shares of the company’s stock. As of its most recent SEC filing, Sumitomo Mitsui Trust Holdings Inc. owns roughly 0.20% of NIO, valued at $71,136,000.

Other hedge funds have also lately increased or decreased their holdings in NIO. In the fourth quarter, Norges Bank acquired a new stake in NIO for around $435,592,000. In the first quarter, Renaissance Technologies LLC increased its holdings in NIO by 2,377.8%. After purchasing an additional 5,183,600 shares in the most recent quarter, Renaissance Technologies LLC now owns 5,401,600 shares of the company’s stock, valued at $113,704,000. In the fourth quarter, BlackRock Inc. increased its holding in NIO by 3.9%. BlackRock Inc. purchased an additional 2,412,164 shares of the company’s stock in the most recent quarter, bringing its total share count to 64,036,975 shares, valued at $2,028,693,000. In the first quarter, Vanguard Group Inc. increased its holding in NIO by 4.9%. Vanguard Group Inc. now owns 2,271,730 more shares of the company’s stock valued at $1,032,737,000 than it did three months ago. And last, in the first quarter, Bridgewater Associates LP increased its holding in NIO by 73.5%. After purchasing an additional 2,255,282 shares in the most last quarter, Bridgewater Associates LP now owns 5,323,524 shares of the company’s stock, valued at $112,060,000. Institutional investors currently hold 31.52% of the stock.

 

Analyst Changes:

Several brokerages have offered their opinions on NIO stock. On Friday, July 1st, Nomura decreased their target price on shares of NIO from $51.50 to $25.80. On Thursday, October 6th, Mizuho dropped their price target on shares of NIO from $42.00 to $40.00 and reaffirmed a “buy” rating on the business. On Thursday, September 8th, Citigroup dropped their price objective on shares of NIO from $41.10 to $31.30 and reaffirmed a “buy” rating on the business. Last but not least, HSBC upgraded shares of NIO from a “hold” rating to a “buy” rating in a research report on Thursday, June 30th. Thirteen investment analysts have given the stock a buy rating, compared to one who has given the stock a hold recommendation. MarketBeat reports that the company has a “Moderate Buy” consensus rating and an average target price of $36.02.

The company’s 50-day and 200-day moving averages are $18.84 and $18.99, respectively. Market value of the stock is $22.16 billion, price-to-earnings ratio is -14.43, and beta is 2.01. Nio Inc.’s 52-week low and high are $11.67 and $44.27, respectively. The company has a debt-to-equity ratio of 0.38, a quick ratio of 1.78, a current ratio of 1.87, and a quick ratio of 1.87.
On September 7th, NIO (NYSE:NIO – Get Rating) released its most recent quarterly earnings report. Earnings per share (EPS) for the quarter were ($1.34), exceeding the ($1.37) consensus estimate of analysts by $0.03. Analysts had predicted $9.77 billion in sales for the company during the quarter; instead, it brought in $10.29 billion. NIO had a 23.93% negative net margin and a 30.36% negative return on equity. The company’s quarterly earnings increased 21.8% year over year. The business reported ($0.07) in earnings per share for the same quarter in the previous year. Sell-side analysts believe Nio Inc. will produce -0.8 earnings per share for the current fiscal year as a whole.

 

Fundamentals Analysis:

Positive Fundamentals:

The company has superior risk adjusted returns.  Nio Inc. has performed well in comparison to its sector peers.  The stock’s yearly returns have been stable and consistent in comparison to its peers in the sector. The company has a lower debt ratio than its peers.  The EV manufacturer has had positive total cash flow in the previous fiscal year.

 

Negative Fundamentals:

The company has a low market capitalization, and is one of the smaller companies in its sectors with a market capitalization below the average.  The company is currently trading overpriced comparison to the registered book value, when looking at the sector it participates in.  Nio is also trading over it’s valuation on a cashflow basis, and has negative free cash flow.  Lastly, the company has a low set of earnings growth, in comparison to  the growth currently being reported in the industry it operates in.

 

 

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