FMP

FMP

NIO Shares Fall on Barclays Downgrades

-

twitterlinkedinfacebook
blog post cover photo

Image credit: FMP

NIO (NYSE:NIO) fell nearly 2% pre-market today after Barclays analysts downgraded the company to Underweight from Equalweight, reducing the price target to $4.00 from $5.00.

The analysts noted NIO's March deliveries were weaker than expected, aligning with revised but not original guidance, highlighting concerns over sales momentum for its 2024 models.

With few new launches expected for the rest of the year, there are significant concerns about NIO's ability to meet consensus estimates. Additionally, the increasingly competitive EV market in China, especially in the higher-end SUVs and sedans segment where NIO operates, poses further challenges.

Competitors like Huawei, BYD’s Danza brand, and recently Xiaomi have introduced compelling models, intensifying the competition. Adjustments have been made to NIO's revenue estimates for 2024 and 2025, reflecting these challenges while maintaining vehicle margin estimates. Despite slight reductions in operational expenses to mitigate bottom line losses, the price target has been lowered due to weaker March deliveries and mounting competition.

Other Blogs

Nov 22, 2024 5:08 AM - Parth Sanghvi

Fundamental Analysis: Principles, Types, and How to Use It

Fundamental analysis is one of the most essential tools for investors and analysts alike, helping them assess the intrinsic value of a stock, company, or even an entire market. It focuses on the financial health and economic position of a company, often using key data such as earnings, expenses, ass...

blog post title

Dec 17, 2024 8:58 AM - Sanzhi Kobzhan

Examining Tesla’s Financial Health Using FinancialModelingPrep’s Ratios API

Tesla, one of the world’s most talked-about electric vehicle manufacturers, attracts a lot of attention from investors and market watchers. By examining a snapshot of Tesla’s financial ratios—such as those provided by FinancialModelingPrep’s Ratios API—we can get a clearer picture of the company’s f...

blog post title

Dec 22, 2024 7:59 AM - Sanzhi Kobzhan

Two great Software Platform Stocks Similar to Palantir (PLTR)

When it comes to cutting-edge software and data analytics, Palantir Technologies (NYSE: PLTR) is often front and center. But for many investors, it’s important to consider alternative or complementary stocks in the same sector that may offer robust growth potential. As PLTR looks expensive (overvalu...

blog post title