JP Morgan reiterates NIO’s price target of $30 while keeping an Overweight rating

Written by Cláudio Afonso |

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.

Last month, JP Morgan Chase & Co has filed a 13F-HR/A form disclosing ownership of 7,640,838 shares of NIO with total holdings valued at $242,062,000 as of December 31, 2021. The firm currently holds put options representing 420,200 of underlying shares valued at $13,31M.

The firm has recently downgraded 28 Chinese internet stocks including Alibaba, and Tencent Holdings to an underweight rating, calling them “uninvestable” due to “rising geopolitical and macro risks”.

During Q4 2021, JPMorgan Chase’s added roughly 6 million NIO shares, bringing the total up to more than 7 Million, an almost 400% increase from Q3 2021, when the firm was holding about 1.6 million shares.

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).

NIO‘s CEO said 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. NIO reported its Earnings Results on Wednesday. The company had a total Revenue of $1.55B in Q4 2021 (an increase of 52.0% Year-over-Year) beating Wall Street expectations by $20M.

Written by Cláudio Afonso |