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Analysts project 40% growth for NIO stock despite slump in October deliveries

Analysts project 40% growth for NIO stock despite slump in October deliveries

Nio Inc (NYSE: NIO) stock on Wednesday gained 0.48% after experiencing short-term volatility earlier in the day to close at $41.50. 

Overall, the stock has rallied over the last four days despite the company recording unimpressive delivery numbers for October. The company reported 3,667 vehicle deliveries, a 65% drop from September’s numbers.  

However, the drop was anticipated since, in October, the company embarked on upgrading its manufacturing facility to accommodate the ET7 model.

NIO stock performance 

Nio stock has been trading towards hitting another all-time high, having recorded a low of $38.54 on October 22. In general, the stock has narrowly avoided making extreme new lows, which is a significant positive outlook for the company.

NIO YTD stock chart. Source: Finviz. See more stocks here.

The Nio stock is currently trading above its 100-day exponential moving averages and simple moving averages. At the same time, it’s trading above its 200-day exponential moving average and below its 200-day simple moving average, which is an overall good sign for the stock’s trend. 

Based on the last reported trading value, Nio’s pivot point is at $41 with a support of $40. The stock currently has a resistance level of $42. 

The stock has maintained buy signals from both its short-term moving average and its long-term moving average. Nio is generally steady and with many technical indicators pointing to a bullish trend despite trading in the lower range of yearly prices. 

Overall, the stock appears to be bullish; however, it may be ready to make a significant move in the near future. Furthermore, temporary disruptions in the upside trajectory will potentially result in a downside move for the stock. 

Wall Street analysts on NIO stock 

Elsewhere, 10 Wall Street analysts have offered a 12-month price target with an average level set at $59.91. The highest forecast is at $72, while the lowest prediction is $45. The average price target represents a 38.97% change from the last price of $43.11.

A majority of the analysts at nine recommend buying the NIO stock, while the rest has called for holding the stock. 

WallStreet analysts NIO stock projection. Source: TipRanks

Catalysts for potential NIO stock growth 

The company’s stock is likely to surge, considering that China-based EV maker continues to focus on its European expansion plans. Nio announced that its first battery swap station in Oslo, Norway, had been completed and would open soon. 

Furthermore, Nio has shown resilience with this year’s delivery numbers despite the global chip shortages that impacted EV manufacturers. 

Another growth catalyst for the stock might come from the several products the company has lined up to launch next year. For instance, there is a buzz around the NIO ET7. In the coming events, investors will be looking out for any announcements on the company’s new products.

Notably, from August to September, Nio has managed to almost double its delivery numbers to 10,628. This ability sends a strong message to investors that the company can work around the global chip issues and adjust its operations.

On the flip side, the production might be hit by the resurgence of Covid-19 cases in China which complicates matters considering the semiconductor shortage. 

Notably, with China’s hard stance on Covid-19, the aggressive measures to curb the virus might impact production in high-risk areas.

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