Nio Stock Price Analysis:
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Nio stock price target for the next 12 months is USD 26.76 on average. The average analyst recommendation for Nio stock is a Strong Buy. Nio stock analysis by Stock Target Advisor is Bearish. Based on 3 positive and 6 negative indications. The Nio stock price was USD 10.02 at the most recent closing. The Nio share price moved by -10.30% over the previous week, -10.62% over the previous month, and -74.08% over the previous year.
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Latest Analyst Reports for Nio Stock Price:
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Deutsche Bank Capital issued a report on Monday. They updated their coverage on the stock. Raised the investment firm’s price target to $21 from $20, and maintained the Buy rating on the stock. The analyst admitted that Nio “continues to upset” investors with new operational problems. That is preventing volume in the fourth quarter, he is “optimistic that the worst may finally be over.”
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UBS Securities recently downgraded the stock to Neutral from a Buy rating. Slashed the Nio Stock Price target on the stock to $13 from $32.
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Barclays Capital maintained the Overweight rating on the stock. They cut the Nio Stock Price target to $18 from $19 per share.
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About Nio Inc. (NIO:NYE)
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In China, NIO creates, develops, produces, and markets intelligent electric vehicles. Along with smart electric sedans, it also offers electric SUVs with five, six, and seven seats.
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The business also engages in:
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Design and technology development
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The production of e-powertrains
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Battery packs, and components
As well as sales and after-sales management. It also offers energy and service packages to its customers:
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Power Home, a home charging solution
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Power Swap, a battery-swapping service
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Power Charger, a fast-charging solution
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Power Mobile, a mobile charging service through charging vans,
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Power Map is an application that gives access to a network of public chargers. As well as their real-time information.
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One Click for Power valet service. where it offers vehicle pick-up, charging, and swapping services. Power solutions get provided by the company.
The company also offers:
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Courtesy Vehicles
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Roadside Assistance
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Data Packages
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Auto Financing
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Financial Leasing Services
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Repair, maintenance, and bodywork services. (These are through its NIO service centres and authorized third-party service centres.)
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It also offers third-party:
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Liability insurance
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Statutory liability insurance
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Insurance for vehicle damage
NIO Certified, a used car inspection, assessment, purchase, and sales service. In July 2017, the business, which was NextEV Inc., changed its name to NIO Inc. Shanghai, China serves as the corporate headquarters of NIO Inc., which got founded in 2014.
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News:
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China is facing further Covid outbreaks. These are to blame for the Chinese electric car company’s recent stock decline. They have raised concerns about new Covid limitations in the nation. It caused all Chinese stocks to decrease owing to possible economic repercussions.
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Fundamental Stock Analysis:
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Positive Fundamentals:
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Superior risk-adjusted returns
Nio stock has outperformed its sector rivals on a risk-adjusted basis. Over the course of at least a 12-month holding period in the top quartile.
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Small debt
The company is more flexible since it is less leveraged than its competitors and is in the top quartile. Keep an eye on the news and consider the industry. This is low because there is no room for future expansion at the organization.
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Positive cash flow
The last four quarters saw positive total cash flow for the organization.
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Negative Fundamentals:
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Low market capitalizatioN
This is one of the less significant companies in its industries. With a market capitalization below the average. If it doesn’t have a distinct technology or market that can help it develop. If or gets purchased in the future, it may make it less stable in the long run.
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High turbulence
Over the past five years, this company’s total returns have been erratic. Also, they have been higher than the industry average. If you plan to invest in such a stock, be sure your risk tolerance is adequate.
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Compared to book value, it’s overpriceD
On a price-to-book value basis, the Nio Stock Price is selling at a premium to the median of its peer group.
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Overpriced based on cash flow
On a price-to-cash flow ratio, the Nio Stock Price is trading at a premium to that of its competitors. Its pricing is higher than the sector median. Whenever you are thinking about buying, go with prudence.
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Free cash flow that is negative
In the last four quarters, the company’s free cash flow was negative.
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Low growth in earnings
Compared to its sector, NIO stock price median earnings growth was lower than average. Analysis of the past five years
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Technical Analysis
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Nio stock has been falling since January 17th, 2021. Recently bottomed at $9.69, and moved higher off that support level. It’s not clear if NIO stock has stopped its downtrend. It is currently on another leg down, looking to retest support again at $9.69. If the stock breaks this support level the stock could test support levels in the low $7 range. If the stock can hold its current support level it could move higher and test top resistance at $15.
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Conclusion of Analysis
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The fundamental analysis for Nio stock is Bearish with a score of 3.3 out of 10.
