Morgan Stanley cuts NIO’s Price Target by 48% to $34, maintaining an Overweight rating

Written by Cláudio Afonso |

Morgan Stanley analyst Tim Hsiao lowered NIO’s price target to $34 from $66 while maintaining an Overweight rating. The new 12-month price target represents a 48% cut from the previous one ($66) posted on December, 2021. Analysing the sector, Tim Hsiao mentioned 5 reasons that justify his bullish sentiment on NIO, XPENG and LI Auto:

  1. We believe electric vehicles remain a secular trend regardless of the economic cycle;
  2. EV trio remain the best downstream EV proxy to play China’s EV ambitions;
  3. Early dual-listing on HKEx as downside protection;
  4. Valuations are now much more compelling and expectations are lower;
  5. Capability to better tackle supply disruption.

Valuations are now much more compelling and expectations are lower.

Tom Hsiao, Morgan Stanley Analyst
NIO ET7 (Source: NIO)

At the time, the analyst increased NIO’s price target to $66 from $64 while enhancing the “superior ecosystem, broadening customer and distinct branding make the setup unique and favorable for NIO to gather strength into 2022”. Based on the last closing price, the $34 price target implies an upside of 56% for the Chinese EV manufacturer. The company said that it will report its fourth quarter and full year 2021 unaudited financial results on Thursday, March 24, 2022, after the close of the U.S. markets.

Deutsche Bank analyst Edison Yu released on Sunday a note lowering NIO’s price target from $70 to $50, maintaining the Buy rating. Based on the last closing price at $20.86, the price target represents an upside of 139.7% for the next 12 months. The analyst added that “the main risks for NIO are supply chain constraints and regulatory scrutiny.” Yu also warned on “supplier shortages for chips and battery cells” that can limit NIO’s sales growth.


According to a video posted on TikTok, NIO has thousands of models parked at NIO’s Hefei Factory, in China. The company has been keeping the secrets indoors without unveiling pre-orders numbers, test-drives scheduled, or other relevant numbers and JAC x NIO Factory is not an exception. The EV manufacturer will launch its new five-seater SUV in mid-April and will show it to the public at the 2022 Beijing Auto Show. The international automotive exhibition will take place at the China International Exhibition Center of Beijing from April 21st to April 30th.

NIO announced on March 1st that delivered 6,131 vehicles during last month.February deliveries are often affected by the Chinese Spring Festival Hollidays where the factories usually close from January 31st to February 6th.

Written by Cláudio Afonso |