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Wall Street sets Nio stock price for next 12 months

Wall Street sets Nio stock price for next 12 months

The last sixty-odd weeks have been tough for the electric vehicle (EV) industry and a slowdown in demand – and pivot hybrid models – forced manufacturers to lower prices and saw their shares decline significantly in the stock market

Perhaps the most alarming developments stemming from the trend have been analyst predictions that Tesla (NASDAQ: TSLA) might find its stock crashing to about $23, the fact that Elon Musk’s company sold only one car in South Korea in January, and Lucid (NASDAQ: LCID) losing its spot on the Nasdaq 100 index and hitting its all-time low early in 2024.

Still, this week finally brought some positive news and an uptrend for some EV makers, including China’s Nio (NYSE: NIO), which – after months of near-continuous decline – rose nearly 5% in the last 5 days.

What caused Nio’s rally

Nio’s recent rally can be attributed to several developments, not the least of which is the fact that Jerome Powell, the Chairman of the FED, reiterated that his agency hopes to cut interest rates three times this year. 

While a relatively vague statement filled with uncertainty, it did stem the rising tide of pessimism surrounding the inflation fight that has been picking up speed since the start of the year.

Looking at Nio itself, the firm announced in January that it has entered into a comprehensive 5-year agreement with Contemporary Amperex Technology (CATL), a leading Chinese electric battery company. 

Additionally and likely most importantly, the company published a strong delivery report for vehicle deliveries for January 2024 that showed an 18% increase compared to the same month one year prior.

Analysts forecast massive 12-month upside for Nio

Given the recent string of positive developments, the fact that Wall Street analysts appear generally bullish on Nio does not come as a big surprise. 

What is interesting, however, is just how much of an upside they forecast: on average, the 10 experts analyzed by TipRanks see the EV maker’s stock surging 81.27% to $10.55 within a year.

Nio stock rating. Source: TipRanks

Still, a lack of unanimity and the broader uncertainty is best reflected in the fact that, despite the massive expected upside, Nio is only ranked as a “moderate buy” and has 6 “buy” ratings, and 4 analysts remain neutral.

Finally, despite the spread of ratings and an even greater spread of price targets – the press time highest being $18.70 and $8 being the lowest – it is noteworthy that each of the 10 experts taken into account by TipRanks foresees an upside for Nio compared to its February 9 price of $5.82.

Nio price analysis

Despite the positive developments and the analysts’ bullishness, the one-week chart is the only commonly used timeframe in which Nio stock is in the green. 

Indeed, while the company is up 4.68% in the said period, the last full trading day – February 8 – brought a 0.68% decline to $5.82, and the firm is also down as much as 23.02% in the last 30 days.

Nio 1-week stock price chart. Source: Finbold

Should an investor zoom out further, they’d be flooded with a sea of red as Nio declined 30.88% since January 1, dropped 44.41% in the last 52 weeks, and is 41.21% in the red on the all-time chart.

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