- Giugno 29, 2023
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
Nio recently slashed prices by RMB 30,000 across all its vehicle models to stay competitive in the Chinese EV market. The company has also decided to end free battery-swapping services to new buyers.
This week, Nio announced a $738.5 million strategic investment from CYVN Holdings. The investment is expected to bolster Nio’s balance sheet, accelerate business growth, and expand its international business.
What is the Prediction for NIO Stock?
Reacting to the news of capital injection, Morgan Stanley analyst Tim Hsiao reiterated a Buy rating on Nio stock with a price target of $12, as he feels that the investment from the strategic investor in Abu Dhabi should ease investors’ concern about the company’s short-term cash flow.
However, he contended that more meaningful improvement in cash flow still depends on better volumes in the second half of 2023. He believes that strong order momentum for the new ES6 SUV and ET5 Touring electric wagon in June lays a more “favorable” foundation.
With seven Buys and four Holds, Nio earns Wall Street’s Moderate Buy consensus rating. The average price target of $10.33 implies about 16% upside. Shares are down nearly 9% year-to-date.
