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Analysts as Unsure as Investors on Future of Nio

The Shanghai-based electric vehicle maker (NYSE: NIO) has seen market sentiment slide consistently since its initial public offering on Sept. 12.

Peter H. Frank
    Oct 08, 2018 4:28 PM  PT
Analysts as Unsure as Investors on Future of Nio

An array of mixed coverage apparently has Nio Inc. dogged by investor doubts about its future.

While often referred to as "the Tesla of China," a sobriquet that once carried with it an impressive cachet, these days the nickname might not be so welcome.

The Shanghai-based electric vehicle maker (NYSE: NIO) has seen market sentiment slide consistently since its initial public offering on Sept. 12. The company, which went public at $6.26 per American depositary share, the low end of its expected range, closed today at $6.04, down 3.5 percent, after dipping below $6 earlier in the day.

Indeed, like the changing outlook for the once high-flying Tesla Inc. (Nasdaq: TSLA), whose stock is down more than one-third from its 52-week high, Nio has received starkly diverse opinions about its outlook.

Deutsche Bank on Monday issued a strong "buy" rating on the stock with a $9.50 per share price target, surpassing an "overweight" recommendation from Morgan Stanley, that placed the target at $8.50 per share.

At the same time, Goldman Sachs and Citi have both assigned a "neutral" rating for the company, projecting a price target of $6.56 and $7.20, respectively, for the shares.

Then there's Sanford C. Bernstein, whose analyst kicked off coverage soon after the IPO with an "underperform," and a dismal target price of just $4.20 per share.

Most analysts agree that the investment has risk and question whether the premium electric vehicle (EV) market can fulfill the most optimistic of expectations.

Still, as an early entrant to the market and with its position in China, the company, backed by Baidu Inc. (Nasdaq: BIDU) and Tencent Holdings Ltd. (HKEX: 0700), has left investors clearly undecided.


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