The stock market hasn’t been kind to electric vehicle (EV) companies of late. Last year saw a significant slowdown in demand and sent several firms’ stocks spiraling, with Lucid (NASDAQ: LCID) perhaps being the most recognized thanks to the dubious honor of getting kicked off the Nasdaq 100 index.
This year has, so far, proven to be just as bad as even Tesla (NASDAQ: TSLA), the major EV stock that stood its ground in 2023, entered into a downtrend.
Given the overall trend, it doesn’t come as a surprise that the Chinese electric vehicle company Nio (NYSE: NIO) fared no better and is down according to nearly every commonly used timeframe.
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In the last 52 weeks, Nio fell 52,26%. In the last week, it is down 4.83%, and year-to-date (YTD), the company is 32.19% in the red.
The last trading day – Thursday, February 1 – however, stands in contrast to this trend as the firm rose 1.60% to close at $5.71, and, judging by expert consensus, this latest movement is the new trend as Nio is exceptionally cheap compared to where it will go in the coming months.
Analysts foresee only one way for Nio stock – up
Indeed, despite the broad EV market slowdown that saw Lucid implement a major $10,000 cashback program and Tesla provide numerous discounts on its models – the latest of which came in on the first day of February – Wall Street analysts are very bullish on Nio.
In fact, Nio is considered an overall “moderate buy,” with 6 experts out of the 10 analyzed by TipRanks rating it as a “buy” and the other 4 as a “hold.”
The analysts have proven even more bullish when it comes to price targets for Nio. The lowest forecast for the company, for example, foresees a 40.11% upside to $8 per share.
The average target is, similarly, staggeringly high as it sees the EV maker’s stock rising as much as 90.19% in the coming 12 months, meaning the stock would land close to $10.86 at the start of February 2025 – above even its January 2023 value.
Finally, the high estimate would see Nio skyrocket to prices not seen since mid-2022, as it forecasts a surge of 227.50% to $18.70.
Strong forecasts, weak technicals
In stark contrast to the analyst’s bullishness and in line with Nio’s overall trend, technical analysis (TA) paints a significantly more bearish picture for the EV maker.
Based on its performance in the last 30 days, technicals retrieved from TradingView hint that savvy investors might want to steer clear of Nio shares as it is, overall, ranked as a “sell.”
While oscillators are, on average, neutral on the stock, moving averages decisively signal that it should be considered a “strong sell.”
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Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.
