Investment bank Bernstein has never been a huge fan of Chinese electric car company Nio (NIO 0.52%). Bernstein's latest move on the EV stock, however, looks downright pessimistic.Since initiating coverage of Nio stock back in 2021, Bernstein has commented on Nio's valuation nearly a dozen times, according to data from TipRanks.com. Each time, the banker recommended that investors hold the stock. (Word to the Foolish: On always-optimistic Wall Street, when an analyst tells you a stock is a "hold," you are be ...

The electric vehicle (EV) sector is currently out of favor with investors just now. Slowing sales growth, concerns about battery performance in inclement weather, and weak quarterly results from major players in the industry lately have dampened enthusiasm.For EV stock bulls, this provides opportunities to snap up some of these affected stocks at a discount. For instance, one analyst is convinced that Chinese company Nio (NIO) is quite the irresistible bargain at the moment, so much so that he believes it w ...

Nio (NIO) stock plunged to a 52-week low of $4.78 during trading on Tuesday after announcing its fourth-quarter and 2023 numbers early in the morning. The electric vehicle (EV) maker has struggled to grow sales and margins amid a slow global EV market and intensifying competition in its home market of China.Yet, Nio's outlook for 2024 wasn't nearly as bad as many expected it to be. That's one reason Deutsche Bank analyst Edison Yu, who follows Nio closely, maintained a buy rating and previous price target o ...

Bearish coverage of Nio (NYSE:NIO) only seems to be increasing. The Chinese electric vehicle (EV) producer is falling out of favor with Wall Street at an alarming pace as shares continue declining. Most recently, analyst Eunice Lee of AB Bernstein reiterated a “hold” rating for NIO stock and lowered her price target from $7.50 to $5.50. Shares are currently trading at $5.64, but if this sentiment continues, they will likely drop even further.It’s true that Nio recently reported weaker-than-expected earnings ...

Investment Rating - Maintain HOLD rating for NIO Inc (NIO US) with a revised target price of US$6 20, down from US$6 80 [2] Core Views - NIO's cash burn has accelerated despite the capital injection from CYVN, and the company shows no clear strategy to achieve profitability [2] - The company's 4Q23 earnings missed expectations, particularly in other income and SG&A expenses, with an operating loss of RMB6 6bn, RMB1 9bn higher than projected [2] - Management's FY24E gross profit margin (GPM) guidance of 15-18% is considered overly optimistic, especially given the failure to achieve 15% GPM in 3Q23 and 4Q23 [2] - Even with a 15% vehicle GPM and disciplined R&D and SG&A spending, NIO's FY24E net loss is expected to exceed RMB10bn, far from profitability [2] Financial Performance - 4Q23 revenue and gross profit from vehicles were in line with forecasts, but vehicle GPM of 11 9% missed the guidance of 15% [2] - Gross margin for other revenue was -34%, below the projected -25%, indicating that the elimination of service benefits is impacting margins more than expected [2] - R&D and SG&A expenses in 4Q23 were RMB720mn higher than estimates, contributing to the larger-than-expected operating loss [2] - FY24E sales volume forecast has been cut from 0 21mn units to 0 19mn units due to delayed deliveries of the second brand Alps [2] Earnings and Valuation - FY24E net loss revised from RMB14 7bn to RMB17 2bn, reflecting higher-than-expected costs and lower margins [2] - Target price cut to US$6 20 based on 1 4x revised FY24E revenue estimates, compared to Li Auto's 1 3x FY24E P/S [2] - NIO's profitability remains significantly weaker than peers like Li Auto, which trades at a lower P/S multiple [2] Quarterly Results - 4Q23 sales volume was 50,045 units, down 9 7% QoQ but up 25 0% YoY [7] - Overall ASP in 4Q23 was RMB341,756, down 0 6% QoQ and 14 8% YoY [7] - Gross margin improved to 7 5% in 4Q23, up 3 6ppt YoY but down 0 5ppt QoQ [7] - Operating margin was -38 7% in 4Q23, a decline of 13 3ppt QoQ [7] Financial Summary - FY23E revenue is projected at RMB55,618mn, with a gross margin of 5 5% [9] - FY24E revenue is expected to grow 17 3% to RMB65,239mn, with a gross margin of 8 1% [9] - FY24E operating profit is forecast at a loss of RMB18,814mn, improving from FY23E's loss of RMB22,655mn [9] - Net profit for FY24E is projected at a loss of RMB17,170mn, slightly better than FY23E's loss of RMB21,147mn [9] Cash Flow and Balance Sheet - FY23E net cash from operations is expected to be negative at RMB1,872mn, worsening to RMB10,446mn in FY24E [10] - Cash and equivalents are projected to decline from RMB32,935mn in FY23E to RMB22,783mn in FY24E [9] - Total liabilities are expected to decrease slightly from RMB87,787mn in FY23E to RMB74,228mn in FY24E [9] Growth and Profitability - FY24E revenue growth is forecast at 17 3%, with gross profit growth of 72 8% [10] - Operating margin is expected to improve from -40 7% in FY23E to -28 8% in FY24E [10] - Adjusted net profit margin is projected to improve from -33 2% in FY23E to -23 4% in FY24E [10]

NIO Inc. (NIO) incurred a loss per American Depositary Share of 45 cents in the fourth quarter of fiscal 2023, narrower than the Zacks Consensus Estimate of a loss of 51 cents. The company had reported a loss of 51 cents in the year-ago quarter.This China-based electric vehicle maker posted revenues of $2.41 billion, which topped the Zacks Consensus Estimate of $2.29 billion and increased 3.4% year over year due to higher delivery volumes.Key DetailsNIO delivered 50,045 vehicles in the fourth quarter, up 25 ...

BEIJING, CHINA - JUNE 25: Customers look at a NIO ET7 executive electric sedan at a NIO Inc. ... [+] showroom on June 25, 2022 in Beijing, China. (Photo by VCG/VCG via Getty Images)VCG via Getty ImagesChinese luxury electric vehicle maker Nio stock posted mixed delivery numbers for February, delivering 8,132 cars for the month, down 19% from January and 33% lower from the year-ago period. The decline was not really surprising, given that automotive sales in China are usually weak in January and February, du ...

Nio Inc (NYSE: NIO) could more than double from here even though it reported a sequential increase in quarterly loss on Tuesday, says Tim Hsiao – a Morgan Stanley analyst.The bull case for $NIOCopy link to sectionHsiao remains super bullish on Nio stock primarily because the loss it reported for the fourth quarter today was within his anticipated range. The analyst was also uplifted by a meaningful increase in the EV maker’s cash reserves following a $2.2 billion strategic investment from CYVN in December.N ...

NIO Inc. (NYSE:NIO) Q4 2023 Earnings Conference Call March 5, 2024 7:00 AM ET Company Participants Rui Chen - Head of IR William Li - Founder, Chairman and CEO Steven Feng - CFO Stanley Qu - SVP of Finance Conference Call Participants Tim Hsiao - Morgan Stanley Ben Wang - Deutsche Bank Yuqian Ding - HSBC Ming-Hsun Lee - Bank of America Merrill Lynch Paul Gong - UBS Cheng Jing - CICC Tina Hou - Goldman Sachs Operator Hello, ladies and gentlemen, thank you for standing by for NIO Incorporated Fourth Quarter a ...

Nio (NYSE:NIO) recently delivered solid 2023 delivery numbers and January performance. However, the market appears to remain relatively cold for this high-potential, high-risk Chinese EV maker. Geopolitical risks remain, and the fact that NIO stock is a U.S.-listed ADR provides its own set of headwinds.That said, the company is growing, and growing fast. And concerns around China’s economic slowdown may be coming to a head, as China remains one of the most robust EV markets in the world.So, is Nio a buy at ...