Barclays Analyst expects NIO’s ET7 & ET5 sedans to become best-sellers after deliveries start

Written by Cláudio Afonso |

Barclays analyst Jiong Shao reiterated today an Overweight rating and a $34 price target on NIO shares after the company Earnings report released last week. Shao believes that NIO’s ET7 & ET5 sedans will become best-sellers after deliveries start. NIO ET7 deliveries started this Monday (March 28) and NIO ET5 deliveries are expected to begin in September 2022.

The analyst expects a boost on deliveries on deliveries and revenue on the second half of the year after NEO Park opening providing the company to expand its production capacity. Although, Shao also warns for the current chip shortage and tighter coronavirus restriction measures that could affect the company during the next months.

NIO Catalysts pointed by Barclays Analyst

  • Solid delivery performance and vehicle gross margins;
  • Pre-orders of new models, the ET7 and ET5, are ahead of management’s prior expectations;
  • New factory on track to be in production in September;
  • Continued strong demand for existing models;
  • High market share in targeted vehicle class.

Earlier today, Nomura analyst Martin Heung lowered the firm’s price target on NIO to $51.50 from $67.10 and keeps a Buy rating on the shares. The new price target implies an upside potential of 158.6% based on the last closing price at $19.91. The analyst believes that the upcoming models (ET7, ET5 and ES7) will help NIO this year.

Also today, JP Morgan Chase reiterated NIO’s price target of $30 while maitained an Overweight rating on the shares. Last Friday, NIO shares closed 9.42% lower at $19.91 after Earnings Report, indicating that JP Morgan sees an upside potential of 50.6% for the next 12-months. On March 1, the firm had lowered NIO’s price target by 50%, from $60 to $30.

NIO ES8 Model with NAD (NIO Autonomous Driving) capabilities was spotted in Uppsala, Sweden. The country is part of NIO’s 2022 expansion plan with the first deliveries expected to arrive by the end of this year. In September 2021, the company entered Norway being its first European Market and is currently selling only NIO ES8 model there. Although, NIO ET7 will be available there in the fourth quarter of 2022 and NIO ET5 in Spring 2023, as announced by the company on January 22.

When asked about NIO ET7 orders numbers, NIO’s CEO said that they can’t discuss that although, he unveiled that the orders numbers are actually much more than those reported by media (15,000 units). The company expects to deliver a total of 25,000 to 26,000 vehicles in the first quarter of 2022. In January, NIO delivered 9,652 units and another 6,131 in February reaching a total of 15,783 vehicles. Based on the calculations, the company will deliver between 9,217 and 10,217 in March.

Written by Cláudio Afonso |