NIO Inc.(NIO:NYE) Analysts are Bullish with a Strong Buy rating, $38 target

STA Research
by: STA Research

Based on the Nio Inc. Class A ADR stock forecasts from 10 analysts, the average analyst Nio price target is USD 38.13 over the next 12 months. Nio Inc. Class A ADR’s 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 3 positive signals and 6 negative signals. At the last closing, the NIO price target was USD 19.24. Nio Inc. Class A ADR’s stock price has changed by -1.48% over the past week, -4.84% over the past month and -56.26% over the last year.

In China, NIO Inc. creates, develops, produces, and markets intelligent electric vehicles. Along with smart electric sedans, it also offers electric SUVs with five, six, and seven seats. In July 2017, the business, which was originally known as NextEV Inc., changed its name to NIO Inc. Shanghai, China serves as the corporate headquarters of NIO Inc., which was founded in 2014.

 

What we like:

Superior risk-adjusted returns

This stock has performed well, on a risk-adjusted basis, compared to its sector peers (for a hold period of at least 12 months) and is in the top quartile.

Low debt

The company is less leveraged than its peers and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

 

What we don’t like:

Low market capitalization

This is among the smaller entities in its sectors with below median market capitalization. That may make it less stable in the long run unless it has a unique technology or market which can help it grow or get acquired in future.

High volatility

The total returns for this company are volatile and above the median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced compared to book value

The stock is trading high compared to its peers’ median on a price-to-book value basis.

Overpriced on a cash flow basis

The stock is trading high compared to its peers on a price-to-cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering buying.

Negative free cash flow

The company had negative total free cash flow in the most recent four quarters.

Low Earnings Growth

This stock has shown below median earnings growth in the previous 5 years compared to its sector

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