Written by Cláudio Afonso | [email protected] | LinkedIn | X
Barclays analyst Jiong Shao issued on Tuesday a new research note downgrading Nio‘s rating to Underweight from Equal Weight while cutting the price target to $4, down from $5. The revised price target suggests a potential downside of 13.79%, based on Monday’s closing stock price of $4.64 per share.
In the research note, the analyst evaluated Nio’s sales performance in March as “weaker than expected” adding that Nio‘s troubles in selling its 2024 models can put Barclays’ 2024 consensus estimates at “significant risk.”
“With weaker than expected deliveries in March, Nio’s Q1 deliveries came in in line with revised guidance of 30,000 provided on March 27th but below its original guidance provided on March 5th”, the analyst wrote.
Never miss an update – have our articles sent directly to your email
The analyst implied that the missed quarterly guidance (31,000-33,000 units given on March 5th), is due to the “weaker sales momentum of the new 2024 models” which were just launched in early March.
Barclay’s report follows Morgan Stanley’s one where the firm reiterated an Overweight rating on Nio shares emphasizing the increase in weekly orders on the second half of the month that followed enhancements made to Nio‘s Battery as a Service (BaaS) program.
Nio announced Monday the delivery of 11,866 vehicles in March 2024, marking a 14.3% increase compared to the previous year. Of the deliveries, 6,737 were SUVs and 5,129 were sedans.
In March, Nio began delivering its 2024 models including the ES8, ES6, EC7, EC6, and ET5 Touring. These 2024 models feature upgraded configurations and performance, particularly highlighted by the enhanced Center Computing Cluster, which bolsters computing power and product competitiveness. The company plans to commence deliveries of the 2024 ES7 (EL7), ET7, and ET5 in the second quarter of 2024.
Written by Cláudio Afonso | [email protected] | LinkedIn | X
