Morgan Stanley lowered its 2025 volume estimate for Nio by 9% to 330,000 units, reflecting a weaker-than-expected first half of the year.
Morgan Stanley analyst Tim Hsiao on Wednesday raised the firm’s price target on Chinese EV maker Nio Inc. (NIO) to $6.50 from $5.90.
The new price target implies a 28% upside to the stock’s closing price on Tuesday. The firm kept an ‘Overweight’ rating on the shares. Morgan Stanley lowered its 2025 volume estimate for Nio by 9% to 330,000 units, reflecting a weaker-than-expected first half of the year. However, its 2026-2027 volume estimates remain largely unchanged as the solid order intake of Onvo L90 should underpin more meaningful volume recovery in 2026, the analyst told investors in a research note, as per TheFly.
On Stocktwits, retail sentiment around Nio remained within ‘bullish’ territory over the past 24 hours, while message volume remained at ‘low’ levels. NYSE-listed shares of the company traded flat on Wednesday afternoon at the time of writing.
A Stocktwits user highlighted that the company is up against big rivals in the Chinese EV market, such as BYD.
Nio launched its more affordable Onvo brand in May 2024. The brand started selling its first vehicle–the Onvo L60–in late September. Other vehicles from the brand include the recently launched L90, a full-size SUV, and the upcoming L80 SUV. The company’s other affordable brand, Firefly, started delivering vehicles in April.
Nio is slated to report its second-quarter earnings on September 2. In the three months through the end of June, the company delivered 72,056 vehicles, including 47,132 Nio main brand vehicles, 17,081 Onvo brand vehicles, and 7,843 vehicles from its Firefly brand.
According to data from Koyfin, 12 of 26 analysts covering Nio rate it ‘Buy’ or higher, while 13 rate it a ‘Hold’ and one rates it a ‘Strong Sell.’ The average price target on the stock is $4.92.
NIO stock is up by 17% this year and by about 32% over the past 12 months.
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