Mizuho reiterated a Buy rating on Nio Inc. (NYSE: NIO ) but cut their 12-month price target on the stock to $18.00 (from $20.00) after the Chinese electric automaker reported its 2Q earnings report.
NIO reported 2Q revenues of RMB 8.77 billion, missing the consensus estimate of RMB 9.51B. Deliveries for the quarter were down 24% compared to the first 3 months of the year. However, management guided 3Q deliveries of 56k units, up 138% q/q and 77% y/y as the electric automaker places its faith in its NT2.0 product rollout expected in September, along with an expanding service and power network.
Analysts wrote in a note, “While NIO did not guide its full 2023E production (prior ~250k), we believe the company can see improving deliveries through 2H23E as it expands its sales force and sees demand tailwinds from RMB 30k price cuts implemented in June.”
The automaker reported an EPS loss of (3.28) for the quarter, missing the consensus estimate of (2.41).
NIO is targeting ~30k vehicles/month starting in Oct'23 as it increases its sales staff.
Mizuho raised their F23E/F24E deliveries estimates to ~174k/290k units, up 42%/66% y/y. Mizuho also adjusted their 3Q revenue and EPS estimates from RMB 16.5B and (2.26) to RMB 19.2B and (2.16) respectively. Consensus estimates for the 3Q are RMB 17.4B/(2.42).
“Despite concerns of a softer consumer, we believe NIO remains well-positioned with multiple upcoming ramps including its lowest cost SUV ES6, a multi-year EV adoption tailwind, market leadership in premium EVs in China, the largest EV market, EU/Global expansion, and an expanding product portfolio,” added the analysts.
Shares of NIO are down 2.34% near end-of-day trading Wednesday.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.