Nio stock added to 30-day positive catalyst watch at Citi

April 28, 2025 10:39 PM AEST | By Investing

Google News:

Nio stock added to 30-day positive catalyst watch at Citi

Recent News

Igloo Launches ‘The Cooler Brand’ Campaign Inspiring Enjoyment for All

Lawmakers push to ban direct-to-consumer drug advertising, WSJ reports

Single passenger survives Air India crash; Boeing and GE shares slide

Chime IPO surges 59% in NASDAQ debut

Investing.com -- Citi has placed Nio (NYSE:NIO) stock on a 30-day positive catalyst watch amid expectations of a faster-than-expected rollout of new models, the upcoming launch of the new driver-assistance system and chip upgrades, and improving cost dynamics.

The Wall Street bank believes the Chinese electric vehicle (EV) maker is positioned for a material sequential rebound in vehicle shipments and margin recovery in the coming quarters.

Citi analysts project Nio could deliver approximately 63,000 units in the second quarter, up 50% from the previous quarter.

Deliveries may accelerate to 100,000–120,000 units in the third quarter and 120,000–150,000 units in the fourth, implying a potential re-rating of full-year 2026 volumes to 600,000 units from Citi’s current forecast of 456,000.

Nio is expected to ramp up production of ten new models in 2025. Inventory of older models should be cleared by mid-May, paving the way for the launch of four new vehicles under the 5-series and 6-series nameplates.

“New 5-series and 6-series production cost should be further improved largely by enhancing the common auto-parts sharing potion, as well as simplified platform architecture,” analysts led by Jeff Chung said in a note.

Additional launches include the third-generation ES8 and new models under the Onvo and Firefly sub-brands.

Cost reductions are also a central theme in Citi’s thesis. The automaker will debut its self-developed Advanced Driving Assistance Systems (ADAS) chip by the end of May, replacing Nvidia’s chip and potentially lowering the bill of materials by roughly RMB10,000 per vehicle.

Vehicle gross margins, which likely fell in the first quarter, are forecast to recover to 13% in the second quarter and 18–20% by the fourth quarter for the Nio brand.

Citi maintained its Buy rating and kept its target price unchanged at $8.10 for Nio’s U.S. shares and HK$62.50 for the Hong Kong listing.

The bank expects Nio to continue rolling out more new models into fiscal year 2026, supported by declining R&D and SG&A costs on a percentage-of-revenue basis.

This article first appeared in Investing.com

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (“Kalkine Media, we or us”), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary.
The content published on Kalkine Media also includes feeds sourced from third-party providers. Kalkine does not assert any ownership rights over the content provided by these third-party sources. The inclusion of such feeds on the Website is for informational purposes only. Kalkine does not guarantee the accuracy, completeness, or reliability of the content obtained from third-party feeds. Furthermore, Kalkine Media shall not be held liable for any errors, omissions, or inaccuracies in the content obtained from third-party feeds, nor for any damages or losses arising from the use of such content.
Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyrighted to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have made reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.
This disclaimer is subject to change without notice. Users are advised to review this disclaimer periodically for any updates or modifications.