Written by Cláudio Afonso | LinkedIn | X
Goldman Sachs analyst Tina Hou shared a new research note on Tuesday lowering the firm’s price target on the EV maker Nio by 40 cents to $3.50.
While cutting the price target by 40 cents, Hou maintained a Sell rating on the stock and expects a downside of nearly 20% — based on the last closing price of $4.36.
Between late August and early October 2024, Nio shares more than doubled from $3.63 to $7.71. However, the stock gave up part of those gains and has fallen 43.40% since that October peak.
In late November, the Goldman Sachs analyst downgraded Nio’s U.S.-listed shares from Neutral to Sell, reducing the price target by 19% to $3.90, citing concerns about the production ramp-up of the company’s second brand, Onvo.
In late December, the analyst reiterated a Sell rating and a price target of HK$30.00 for the Hong Kong-listed shares of the Chinese manufacturer after meeting with Nio’s management. This Tuesday, Tina Hou reduced the price target to HK$27.00 while upgrading the rating from Sell to Hold.
Goldman Sachs team discussed with Nio the company’s plans for 2025, covering the three brands under the group. By then, Hou stated that the EV maker plans to update some of its models in 2025, with launches expected in the second half of the year.
The revamped models will feature advanced technologies, including Nio’s in-house developed autonomous driving chip, an 800V battery platform, and two additional LiDAR sensors, similar to those showcased in the flagship ET9 sedan at the Nio Day event.
The note also confirmed that Onvo plans to launch two new SUVs next year, comprising a five-seater model and a 6/7-seater variant. Regarding the recently launched EV brand Firefly, Goldman Sachs says the management expects sales to reach 50,000 units in 2025, with deliveries starting in late April.
The brand will launch in Europe in the first half of next year, Nio’s founder and CEO confirmed last weekend. Opposite to Nio’s premium vehicles, the compact model will be sold via a distribution partner established in each country.
As reported earlier this Tuesday, Nio registered 2,800 vehicles under its main brand in the third week of the year, an 86.7% rebound from 1,500 units recorded between Jan. 6 and Jan. 12.
Onvo’s Weekly Registrations Slightly Increase to 1,900 UnitsThe second brand Onvo registered 1,900 units, up from 1,800 in the previous week — according to registration data shared by Li Auto on Tuesday.
Written by Cláudio Afonso | LinkedIn | X
