Macquarie analyst Erica Chen initiated coverage on the U.S. listed Chinese EV Leaders: Nio, Xpeng and LI Auto. Even having a Bullish Rating for the three Chinese EV Makers, Chen is conservative compared to the average Price Targets for this companies from Wall Street.
Macquarie analyst Erica Chen initiated coverage on NIO with Outperform rating and a PT of $37.70. Although being bullish, it’s the first recent Price Target that the company receives under $50. NIO has been receiving many Price Target Updates after the NIO Day and, more recently, the Deliveries Numbers from December and the Global ones from 2021.
NIO is selling every vehicles it produce and had a Year-over-Year growth on deliveries of 109%. Almost all of its vehicles are for the Chinese market – sold 217 vehicles in Norway (the first market outside China) since late September 2021 entrance.
Two weeks ago, Credit Suisse released a note where it maintained the Outperfom Rating and the $83 Price Target for NIO plus the first leaked photos of the new SUV Model ES7.
Through a conference call with Credit Suisse, NIO’s CFO said “By end of 2022, double YoY Sales Growth is a very conservative expectation already.” – expecting +185,000 units for this year.
On January 10th, HSBC Raises NIO Price Target to $54 and maintained the Rating. Last week, Deutsche Bank analyst Edison Yu reiterated NIO‘s Buy Rating and $70 Price Target – a +100% upside from the last closing price.
Chen’s price target for NIO – $37.70 – 22% from current levels;
Average PT for NIO shares – $59 – 95% upside from current levels;
Percentage of Buy Rating from Analysts – 84%;
Last month, XPeng set a new monthly record with 16,000 deliveries. In the annual deliveries of 2021, XPeng delivered 98,155 vehicles. This is up 263% compared to the previous year’s data. December vehicle deliveries for all EV producers may have been driven by a subsidy cut for Chinese electric car buyers in 2022.
According to Reuters, the subsidies have been cut by the Chinese Government each year from 2020 and will disappear at the end of 2022. The subsidy for an electric vehicle is about 10,000 yuan (roughly $1,500) to 14,400 yuan ($2,250).
Chen’s price target for XPENG – HK$221 – 20% upside from current levels;
Average PT for XPENG shares – $58.30 – 20% upside from current levels;
Percentage of Buy Rating from Analysts – 85%;
Li Auto delivered 14,087 units in December. A figure that is also a monthly record with 90,491 vehicles sold in all of 2021, up 177% Year-over-Year.
Chen’s price target for LI Auto – HK$221 – 90% upside from current levels;
Average PT for LI Auto shares – $43.80 – 42% upside from current levels;
Percentage of Buy Rating from Analysts – 91%;