Assessing NIO: Insights From 12 Financial Analysts

Throughout the last three months, 12 analysts have evaluated NIO NIO, offering a diverse set of opinions from bullish to bearish.

The following table encapsulates their recent ratings, offering a glimpse into the evolving sentiments over the past 30 days and comparing them to the preceding months.

The 12-month price targets, analyzed by analysts, offer insights with an average target of $6.09, a high estimate of $10.00, and a low estimate of $4.00. This current average represents a 20.08% decrease from the previous average price target of $7.62.

Interpreting Analyst Ratings: A Closer Look

The standing of NIO among financial experts becomes clear with a thorough analysis of recent analyst actions. The summary below outlines key analysts, their recent evaluations, and adjustments to ratings and price targets.

Key Insights:

• Action Taken: In response to dynamic market conditions and company performance, analysts update their recommendations. Whether they 'Maintain', 'Raise', or 'Lower' their stance, it signifies their reaction to recent developments related to NIO. This insight gives a snapshot of analysts' perspectives on the current state of the company.
• Rating: Gaining insights, analysts provide qualitative assessments, ranging from 'Outperform' to 'Underperform'. These ratings reflect expectations for the relative performance of NIO compared to the broader market.
• Price Targets: Gaining insights, analysts provide estimates for the future value of NIO's stock. This comparison reveals trends in analysts' expectations over time.

Analyzing these analyst evaluations alongside relevant financial metrics can provide a comprehensive view of NIO's market position. Stay informed and make data-driven decisions with the assistance of our Ratings Table.

Stay up to date on NIO analyst ratings.

Discovering NIO: A Closer Look

Nio is a leading electric vehicle maker, targeting the premium segment. Founded in November 2014, Nio designs, develops, jointly manufactures, and sells premium smart electric vehicles. The company differentiates itself through continuous technological breakthroughs and innovations such as battery swapping and autonomous driving technologies. Nio launched its first model, its ES8 seven-seater electric SUV, in December 2017, and began deliveries in June 2018. Its current model portfolio includes midsize to large sedans and SUVs. It sold over 160,000 EVs in 2023, accounting for about 2% of the China passenger new energy vehicle market.

NIO's Financial Performance

Market Capitalization: Indicating a reduced size compared to industry averages, the company's market capitalization poses unique challenges.

Revenue Growth: NIO displayed positive results in 3 months. As of 31 December, 2023, the company achieved a solid revenue growth rate of approximately 6.47%. This indicates a notable increase in the company's top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Consumer Discretionary sector.

Net Margin: NIO's net margin excels beyond industry benchmarks, reaching -32.7%. This signifies efficient cost management and strong financial health.

Return on Equity (ROE): NIO's ROE is below industry standards, pointing towards difficulties in efficiently utilizing equity capital. With an ROE of -27.11%, the company may encounter challenges in delivering satisfactory returns for shareholders.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -5.09%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: NIO's debt-to-equity ratio stands notably higher than the industry average, reaching 1.97. This indicates a heavier reliance on borrowed funds, raising concerns about financial leverage.

Analyst Ratings: What Are They?

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Analysts may supplement their ratings with predictions for metrics like growth estimates, earnings, and revenue, offering investors a more comprehensive outlook. However, investors should be mindful that analysts, like any human, can have subjective perspectives influencing their forecasts.

This article was generated by Benzinga's automated content engine and reviewed by an editor.