Nio Gets A Price Target Hike, Upgrade From Freedom Capital – Analyst Expects Revenue At ‘New Record Levels’

• Nio has shown accelerating delivery growth in recent quarters and intends to build on that momentum with the launch of two sub-brands, Freedom Capital said. 
• Barclays, however, noted that Nio's Q4 delivery guide is lower than expected.
• Nio is currently banking on strong demand for its new ES8 and Onvo L90 vehicles to drive delivery numbers in the last quarter of the year.

NYSE-listed shares of Chinese EV maker Nio Inc. (NIO) traded 1% higher on Friday after a price target hike and upgrade.

Freedom Capital upgraded Nio to ‘Buy’ from ‘Hold’ with a price target of $7, up from $6.50. The Chinese EV maker has shown accelerating delivery growth in recent quarters and intends to build on that momentum with the launch of two sub-brands, the firm noted.  

The analyst believes that rising shipments next year will drive the company's revenue to "new record levels."

Nio’s Rising Delivery Volume

For the third quarter through the end of September, Nio delivered 87,071 vehicles, marking an increase of about 41% from the corresponding quarter of 2024. The company currently has three brands, including its premium Nio brand and two other brands, Onvo and Firefly, which offer cheaper offerings. In the third quarter (Q3), Nio delivered 36,928 vehicles from its Nio brand and 37,656 and 12,487 units from Onvo and Firefly, respectively.

For the fourth quarter, the company expects to deliver between 120,000 and 125,000 vehicles. Representing a growth of 65.1% to 72.0% year-over-year. However, in September, the company had said it was eyeing 150,000 deliveries in the three months through the end of December.

Barclays’ Take

A less optimistic Barclays raised its price target on Nio to $4 from $3 on Friday, while keeping an ‘Underweight’ rating on the shares. The company's Q3 results showed better vehicle gross margins but higher sales and marketing expenses, the analyst told investors in a research note. The firm also noted that Nio's Q4 delivery guide is lower than expected.

Nio is currently banking on strong demand for its new ES8 and Onvo L90 vehicles to drive delivery numbers in the last quarter of the year.

"The All-New NIO ES8 has set the fastest record for delivering over 10,000 units among BEVs priced above RMB400,000 in China, while the ONVO L90 has remained the top-selling large BEV SUV for three consecutive months, and FIREFLY has quickly secured a leading position in the small smart high-end electric car market since its first deliveries,” CEO William Li said on Tuesday. He added that the company is working closely with its supply chain partners to ramp up production.

Nio had previously planned to launch the L80 this year but postponed it due to capacity constraints.

How Did Stocktwits Users React?

On Stocktwits, retail sentiment around NIO remained bullish over the past 24 hours, while message volume remained high.

NIO stock is up by 26% this year and by about 23% over the past 12 months. 

Read also: Entero Therapeutics Stock Jumps After Company Rebrands As GridAI Technologies Corp.

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