NIO Stock Forecast: NIO’s Revised price target is at $35(Higher)

NIO Stock Forecast: NIO’s Revised price target is at $35(Higher)


NIO Stock Forecast 2022: Performance in 2022

NIO Stock Forecast: Latest Updates

  1. NIO is planning to expand its markets: Nio is expanding its market to new countries such as the Netherlands, Denmark, and Sweden. Its flagship model Nio ET7 is available in these markets. Nio’s charging map for Europe was also rolled out with 380k charging stations accessible to Nio.
  2. Nio’s highest quarterly deliveries: Nio released its Quarter 3 delivery results. It delivered more than 10.8k vehicles this September and over 31.6k vehicles in the 3rd quarter, which is the highest quarterly deliveries and up 29.3% y-o-y.
  3.  Nio’s first battery swap station in Germany: Nio has opened its first battery swap station in Germany and plans to build 20 Swap Stations in Europe by 2022 and 1000 stations outside China by 2025.
  4. Nio’s deal with Greenwing: Nio has entered into a deal with Greenwing resources (A lithium company) where Nio agreed to pay $7.4 million (12 million Australian dollars) for approximately 21.8 million shares which makes Nio a stakeholder of 12% in Greenwing Company. This is seen as a strategic step to procure battery raw materials in the long run. It also plans to develop in-house battery packs by 2024.

NIO Stock Forecast for next 12 Months

The average forecast for the next 12 months$35
Mizuho$40
Citigroup$31
Morgan Stanley$31
HSBC$28
Nomura$26

Peer Comparison and Partnerships

Despite double-fold revenue growth, 2021 was not a good year from an investor’s perspective as the stock price of Nio witnessed a fall of roughly 40% over the span of a year. Also, Nio faced intense competition from the market leader Tesla and the new entrant Xpeng which grew more than 2.5 times in 2021 with its share price rising almost 15%. Both Nio and Xpeng reported huge negative margins for the previous year, as costs related to R&D and SG&A significantly took a toll on the revenues.

In a recent move, to strengthen the supply chain and product distribution, NIO announced a strategic collaboration with the Chinese steel producer Baoshan Iron & Steel (Baosteel). The participating companies also seek to boost technological innovation alongside working in sustainable green, zero-carbon pathways.

NIO Stock Forecast: The Picture Ahead

Considering the fact that Nio operates in a competitive market, looking ahead to 2022, the company’s long-term horizon seems better than the competitors.

Nio began exporting its model  ET7 sedan and has announced previously to expand its model lineup, which includes the mid-size luxury sedan ET5, which is to enter the market by the end of October this year. Also, the company is focusing on its international expansion. Last year, the company made entry into Norway, and over 2022 it plans to penetrate further into the European market, which presents an immense and rapid growth potential if the company could execute its initiatives well. 

Though everything is not green for Nio. The company may potentially face a growth slowdown in the existing marketplace. Moreover, investors have also been concerned about the regulatory risks and scrutiny that loom over Chinese technology companies operating and listed in the US. The future of Nio very much depends on these crucial factors and investors should take these into consideration before making an investment in the company.

NIO Stock Forecast: BUY, SELL OR HOLD?

As of now, the company shares are currently trading undervalued compared to its industry peers. For a company with 110% in revenue growth, it is moderately priced and seems to be a lucrative investment opportunity. Taking these factors into account, despite having some serious risk factors the company presents a more upside potential for a year-long investment.

-Pratik Kaundilya

Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Stocks or Crypto Coins. Please consult a registered investment advisor to guide you on your financial decisions.

NIO Stock Forecast 2022: Will NIO reach $100 this year?
Vineet

Vineet

Vineet Agarwal is a trained technical analyst and avid stock trader. A graduate from a Top Technology Institute, Vineet carries out extensive technical and secondary research for this authored stock forecasts.