Nio Inc.
Nomura upgraded Nio to Buy from Neutral after the electric-vehicle maker reported stronger financial performance and operational improvements over the past two quarters.
The firm said higher vehicle deliveries and tighter cost control helped support profitability and signal the beginning of a healthier growth phase for the company.
Nomura expects Nio's vehicle deliveries to grow at a compound annual rate of about 25% between 2025 and 2028, with revenue increasing at roughly 21% over the same period.
While Nomura lowered its price forecast to $6.60 from $8.40, it said the target still implies roughly 34% upside from recent trading levels.
BofA And Bernstein Highlight Strong Results But Remain Cautious
Other analysts acknowledged Nio's strong quarterly performance but maintained more cautious views on the stock.
Bank of America Securities (BofA) kept a Neutral rating and raised its price forecast to $6.70 from $6.30 following the company's fourth-quarter report.
The firm noted that revenue growth reflected strong vehicle sales growth and a higher average selling price supported by the ES8 model.
However, BofA said vehicle margins came in below its expectations, despite overall profitability improving.
Bernstein SocGen Group reiterated a Market Perform rating with a $5.50 price forecast, highlighting the company's revenue growth, improved margins, and its first profitable quarter.
At the same time, the firm said the significant decline in research and development spending could raise questions about Nio's long-term competitiveness as rivals continue advancing driver-assistance technologies.
Other Analysts See Margin Improvement And Growth Potential
Some analysts took a more optimistic view of Nio's trajectory after the earnings report.
Macquarie raised its price forecast to $6.50 from $6.10 and maintained an Outperform rating, pointing to improved vehicle margins and lower operating expenses following the results.
The firm also noted that the company generated positive operating cash flow, which could reduce the need for future fundraising. However, it trimmed its 2026 volume forecast due to weaker near-term demand and increasing competition in the electric-vehicle SUV market.
Morgan Stanley reiterated an Overweight rating with a $7.00 price forecast, emphasizing the company's delivery growth outlook.
The firm pointed to projections from Nio's founder that deliveries could grow at a 40% to 50% compound annual rate over the next two years, supported by upcoming models including the ES9, ES7, and Onvo L80.
NIO Price Action: Nio shares were up 3.65% at $5.66 at the time of publication on Thursday, according to Benzinga Pro data.
