Macquarie analyst Erica Chen released a new note on NIO after the Chinese electric vehicle maker reported the financial results for the first quarter of 2022. Chen lowered the firm’s price target on NIO shares to $27.40 (from $28.30) maintaining an Outperform rating.
The analyst enhances that the guidance given by NIO for the second quarter implies a new monthly record for June, which will represent a month-over-month growth of 69% and 47% year-over-year.
Chen added that the market will “like NIO‘s monthly momentum trends”warning that its gross margin “may disappoint as it was dragged down by rising battery costs”.
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Also Citi analyst Jeff Chung released a new note reiterating the firm’s $87 price target on NIO shares, an upside potential of 362.3% from the previous closing price. The firm had raised NIO‘s price target back in November 2021 from $70 to $87.
The analyst said that the EV maker is about to ramp up the production now that its F1 (factory number one) is back to pre-Covid levels plus the opening of NEO Park (F2) in the third quarter of the year.
Last week, NIO surpassed the U.S.-based Lucid Motors in Market cap becoming the third biggest EV maker after Tesla and BYD. On Monday, NIO stock opened higher at $18.99 and immediately saw buy pressure gapping up to a new 6-weeks high of $19.80 resulting in a Market Cap value of $31.482 billion. In parallel, Lucid stock went down to $18.80 per share which, considering the 1.67 billion shares outstanding, results in a market cap value of $31.412 billion.
NIO will hold a conference to officially launch the new SUV model NIO ES7 on June 15, at 20:00 in Shanghai timezone. The company will start receiving reservations on the evening of the conference and the orders will start to be locked in July with the first deliveries expected as soon as the end of August.