Nio Analyst Reiterates Bullish Stance And Hikes Revenue Estimates Following 'Nio Day 2021'

Nio, Inc. NIO held its "Nio Day 2021" event on Saturday, during which the EV maker announced its fifth vehicle model – the ET5.

The Nio Analyst: BofA Securities analyst Ming-Hsun Lee reiterated a Buy rating and $65 price target on Nio shares, suggesting an upside of over 116% from current levels.

The Nio Thesis: Nio's ET5, a mid-sized sedan, is set to be delivered in Sept. 2022, and will come equipped with the latest Nio Autonomous Driving, powered by the lidar-enabled Nio Aquila Super Sensign and Nio Adam Super Computing Platform, Lee noted.

The new model can offer a 100 km driving range, supported by a 150-kilowatt-hour battery pack and high-efficiency electric powertrain with SiC power module, the analyst added.

Nio also announced updates on its ET7 sedan unveiled in January, with order confirmation to start on Jan. 20 and deliveries to begin on March 28, the analyst said.

The company announced the addition of 20 new features and specifications to the ET7, including an improvement in the 0-100 km/h acceleration from 3.9 seconds to 3.8 seconds, Lee added.

Among other notable announcements at the Nio Day event were the company's plan to have 1,300 battery swap stations, 6,000 superchargers and 10,000 destination chargers across China by the end of 2022. Nio also plans to expand into Germany, the Netherlands, Sweden and Denmark, he said.

BofA raised its 2022 and 2023 volume estimates for Nio by 5% and 7%, respectively, and revenue estimates for each year by 5% and 10%, respectively. The firm attributed the upward adjustment to the latest ET7/ET5 delivery time, updated product mix, and pricing.

The bullish stance on Nio is premised on the company's fast brand expansion and continuous new model launch, the firm added.

Nio Price Action: At last check, Nio shares were plunging 6.52% to $28.05.

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