Nio (NIO) to become profitable very soon, PT raised to $70

Nio (NIO) reported a successful earnings beat with revenues surging 127%. Nio said it delivered 21,896 vehicles in the second quarter, within its own previously-stated range. For the third quarter, Nio forecasts that it will deliver between 23,000 and 25,000 vehicles.

Nio, which makes the EC6, ES6 and ES8 SUVs, is also gearing up to begin deliveries of its first sedan, the ET7, next year. Nio has tried to differentiate itself from competitors through its battery swapping service. Nio users can go to special service stations to swap their depleted battery for a fully-charged one.

The company also plans to enter the mass market via a sub-brand in an attempt to snag up huge market share.

Ives said that is one reason why he is bullish on Nio’s stock.

BofA analyst Ming Hsun Lee noted that Nio plans to deliver three new models based on its NT2.0 platform, including the ET7, in 2022 and the analyst raised the 2022 volume sales forecast for Nio, but keeps a $62 price target on the shares as Lee also accounts for estimated new share issuance to employees. The analyst, who called Nio’s Q3 guidance “solid” after its Q2 report, keeps a Buy rating on the shares.

Citi analyst Jeff Chung lowered the firm’s price target on Nio to $70 from $72 and keeps a Buy rating on the shares following Q2 results he views as “neutral” and Q3 guidance he sees being “conservative.” Following the report, he maintains his volume forecasts for FY21-23, but cut his blended GPM and blended vehicle ASP estimates, Chung noted.