CLSA has started coverage of Nio‘s Hong Kong-listed shares with an Outperform rating while increasing the price target on the US-listed shares, days after the Chinese EV maker reported its second consecutive non-GAAP profitable quarter.
The brokerage, now named CITIC CLSA, raised the firm’s target on Nio‘s US-listed shares to $7.00 from $6.00, keeping an Outperform rating while setting a target price of HK$55.00 on the Hong Kong-listed stock.
US-listed shares closed at $5.26 on Tuesday. The new target — set by CITIC CLSA’s analyst Ding Luo on Wednesday — implies an upside potential of 33.1%.
The Hong Kong target implies roughly 31.8% upside from Wednesday’s closing price of HK$41.70.
How the View Evolved
CLSA’s stance on Nio has swung widely over five years.
The firm initiated coverage of the US shares in April 2021 with a Buy rating and a $50 target, when the stock traded near $39, citing a projected 48% sales compound annual growth rate through 2025 on the strength of premium EVs, global expansion and mobility services.
Nio‘s US-listed shares reached a new all time high in January 2021 at $66.99.
The bull case faded as the EV sector weakened.
In February 2022, analyst Soobin Park cut the target to $35 from $60 while keeping Buy, a valuation reset after the stock’s slide. That August, analyst Aaron Li lowered it to $27.50.
The most decisive move came in March 2024, when Luo downgraded the US shares to Outperform from Buy and cut the target to $6.00 from $9.80 after weak fourth-quarter 2023 results, citing a revenue decline, a widening loss and slower growth that led the firm to lower its 2024 and 2025 revenue forecasts.
The Turnaround Thesis
The note frames Nio as a profitability story after years of losses.
CLSA pointed to two consecutive quarters of non-GAAP profitability, including a profit of about 45 million yuan in the first quarter of 2026, and to improving margins, with vehicle gross margin reaching 18.8% and non-vehicle gross margin hitting 20.6% in the quarter.
The firm raised its 2026 forecasts sharply, projecting revenue up 18.9% to 133.48 billion yuan and net profit up 104.1% to 277 million yuan.
CLSA cited premium-segment momentum from the ES8 and ES9, upcoming models including the L80 and L90, and cost and operating discipline as the main drivers.
A Forecast Below Nio’s Own Target
CLSA’s delivery assumptions sit below Nio‘s own ambitions.
The brokerage forecasts full-year 2026 deliveries of 441,000 units, with full-year profitability.
That is below the 456,000-to-489,000 range Nio itself has targeted for the year, a goal representing 40% to 50% growth over the 326,028 vehicles it delivered across its three brands in 2025.
How CLSA Compares
CLSA’s $7.00 US target places it in the middle of a divided analyst field.
The target matches the $7.00 Buy target from CMB International, which turned bullish after three years on hold, and sits below Citi’s $8.20 Buy.
CLSA’s take runs above the more cautious calls, including Bank of America’s $6.80 Neutral and Bernstein’s $6.00 Market Perform.
On the Hong Kong shares, CLSA’s HK$55.00 target trails BOCOM International’s HK$65.83 Buy.
The split reflects an unresolved debate over how durable Nio‘s margin recovery will prove as it scales newer, lower-priced models, and over whether its overseas business can contribute.
In Europe, EV has reported earlier on Wednesday that Nio has signaled no new models, price cuts or swap stations for years, leaving the region a limited near-term contributor to the profitability story CLSA describes.
