NIO STOCK FORECAST 2022: WHAT TO EXPECT?

NIO STOCK FORECAST 2022: WHAT TO EXPECT?
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NIO STOCK FORECAST 2022: ANALYSING THE SCOPE OF EV SECTOR COMPANY NIO STOCK FOR THE YEAR AHEAD

NIO STOCK FORECAST 2022: STOCK PERFORMANCE DATA

1 DAY
1 WEEK 
1 MONTH
6 MONTHS
1 YEAR
  +3.84%
-3.07%
-10.81%
-35.22%
-51.61%

NIO STOCK FORECAST 2022: MARKET CAP, REVENUE & EARNINGS

As per the latest financial reports issued by the company, its revenue for the year 2021 stands at $5.16 B, which is an increase of 110% from its previous year’s revenue of $2.55 B. The company has a market cap of around $47.5 B, making it the 4th largest company globally in terms of the market cap of the companies operating in the EV segment. The company earnings remain negative, though it has been steadily rising over the years. 

NIO STOCK FORECAST 2022: ANALYST’S ESTIMATION

The current consensus among the investment analysts is to buy the stock, which has been held steady since the beginning of this year. In the future NIO’s revenue is forecast to grow at a rate of 45.15% per year, which is almost three times the US market averages.

The analysts are suggesting price target for next 12 months a median target of $58, with a higher estimation of $87 and a lower estimation of $27. The median estimate represents a 95% increase from the current price range of around $30.

NIO STOCK FORECAST 2022: FUNDAMENTALS OF THE COMPANY

MARKET CAP
47.75 B
ENTERPRISE VALUE
50.72 B
DIVIDEND YIELD
0.00%
P/B RATIO
16.6
P/E RATIO
-41.1
FORWARD P/E
434.78
BOOK VALUE
15.57
EARNINGS PER SHARE 
-6.43
RETURN ON EQUITY
-37.70%

NIO STOCK PRICE PREDICTION 2022? – NIO UNDERVALUED?

Also Read: Nio Stock Forecast

Also Read: Best EV Stocks to Buy

PEER COMPARISION & RECENT DEALS

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. The other companies operating in the electric vehicle market are riding at much higher, which is not the case with the Nio.

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 2022: THE PICTURE AHEAD FOR 2022

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 is expected to begin exporting its model  ET7 sedan by March 2022 and has announced previously to expand its model lineup, which includes 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 looms 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 2022: 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. In the month of December, most of the Electric Vehicle companies went through a correction during which the share price of Nio dropped more than 10%. However, the stocks seem to have bottomed out and it has been showing signs of reversal lately. Taking these factors into account, despite having some serious risk factors the company presents a more upside potential for a year-long investment. Thus justifies the overall recommendation to Buy/Hold.  

NIO STOCK FORECAST 2022: Latest Videos

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-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.

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