NIO Stock Price: $75 Target (Up From $50) By JPMorgan

By Amit Chowdhry ● January 17, 2021
  • The stock price of Nio Inc (NYSE: NIO) has received a price target increase from $50 to $75 earlier this week from JPMorgan. These are the details.

The stock price of Nio Inc (NYSE: NIO) has received a price target increase from $50 to $75 earlier this week. And JPMorgan analyst Nick Lai reiterated a “Buy” rating on NIO.

Lai had cited four initiatives announced at NIO Day 2020 in Chengdu, China. The four initiatives included in-house autonomous driving based on NVIDIA technology, a solid-state battery for the upcoming ET7 sedan with a 150-kilowatt-hour battery pack to support with over a 621-mile range (scheduled to begin deliveries in early 2022), the monetization of Autonomous Driving as a service, and the commercialization of LIDAR.

“Our sensitivity analysis suggests this business (Content Monetization) could bring about US$21-35/shr present value to Nio’s valuation (bear case ~US$21, base case ~US$25, bull case ~US$35). We incorporate the base case scenario into our existing fair value estimate (US$50 based on 5.0x EV to 2025 sales, a discount to Tesla’s 8.3x, which we think is reasonable considering NIO’s position as a pioneer among Chinese EV peers, driving business model transformation, and its unique position in the premium EV space among Chinese brands) for a new SOTP-based PT of US$75,” said Lai in a research report via Street Insider.

Ming-Hsun Lee of Bank of America assigned NIO a price target of $70 and a “Buy” rating. Bin Wang of Credit Suisse assigned NIO a price target of $71 and a “Buy” rating. And Edison Yu of Deutsche Bank assigned NIO a price target of $70 and a “Buy” rating.

Lee noted that advanced product and technology launches are going to continue boosting the sales volumes for NIO. And Yu noted that NIO provided investors and customers with a “bold roadmap” over the next couple of years as it is targeting the large premium sedan market with the launch of the ET7 — which is largely dominated by German automakers but this will likely pave the way for a lower price and higher volume mid-sized sedan to be announced at NIO Day next year.

Disclosure: I have a small NIO position in my stock portfolio.