Chinese electric vehicle (EV) maker Nio (NYSE: NIO) has seen a flurry of price target revisions from major banking institutions following its first-quarter 2025 financial results.
The updates come as NIO navigates a competitive EV market in China, with analysts weighing its growth potential against ongoing profitability challenges.
Analyst NIO updates reflect divergent views
On Tuesday, BofA Securities revised its price target for NIO stock to $4.30 from $4.90, maintaining a Neutral rating, citing the company’s Q1 performance and forward-looking guidance.
Similarly, Mizuho lowered its price target to $3.50 from $4, also holding a Neutral stance, pointing to intense competition in China’s EV sector as a key concern. Macquarie followed suit, cutting its target to $3.90 from $4.70 while keeping a Neutral rating, noting that NIO’s Q1 results missed Bloomberg consensus and their own estimates across key metrics.
Morgan Stanley remained optimistic, reiterating an Overweight rating with a $5.90 price target, emphasizing potential improvements in sales volume and cash flow. This bullish outlook stands out against the broader trend of downward revisions, suggesting confidence in NIO’s long-term growth.
Wall Street continues to weigh in on NIO shares
On Wednesday, Bernstein SocGen Group adjusted its price target to $4 from $4.50, maintaining a Market Perform rating, driven by weaker-than-expected Q1 earnings and a softer outlook.
Barclays took a more bearish stance, slashing its price target to $3 from $4 and retaining an Underweight rating, highlighting deep margin losses and delivery hurdles as ongoing challenges.
NIO Q1 2025 performance
NIO reported Q1 2025 revenue of $1.66 billion, a 21.5% year-over-year increase from $1.37 billion, fueled by an 18.6% rise in vehicle sales and a 37.2% surge in other revenue streams.
However, the results fell short of the consensus estimate of $1.73 billion by approximately 4%. Profitability remains elusive, with an adjusted loss per share of $0.41, wider than the expected $0.35 and down 24.2% from the prior year.
The company’s gross profit margin improved year-over-year but remained below analysts’ expectations, with an operational loss of RMB 6.4 billion and a non-GAAP net loss of RMB 6.3 billion.
Despite these challenges, NIO’s stock showed resilience, opening at $3.63 on June 4, 2025, up $0.10 or 2.80% for the day.
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