Why this Nio analyst cut his Q3 delivery estimate by 12%
Bo Pei, a U.S. analyst at Tiger Securities, lowered his estimate for Nio Inc's NIO shipments in the third quarter by 12%, according to a research note.
What happened: "Due to weaker demand and industry competition, we are lowering the Q3 delivery estimate by 12% from 41 718 to 36,856," Pei said in his note analyzing the Chinese electric vehicle company.
Also read: Nio August EV deliveries increase, unlike the larger trend of Rivals Xpeng, Li Auto See numbers falling sequentially
Key Risks: Key risks facing Nio include a highly competitive electric vehicle market led by Tesla Inc TSLA and increased scrutiny of Chinese companies by US securities regulators securities, Pei said.
"As a Chinese company, Nio may face greater data security scrutiny when entering overseas markets," he added.< /p>
Rating unchanged: Pei maintained his "buy" rating on Nio, with a price target of $35.
“Our price target of $35 (unchanged) is based on estimated sales of 3.8x2023 of $15 billion. We note that 3.8x is significantly lower than Tesla's current level of 7.8x,” Pei said.
Deliveries: Nio sold 10,677 cars in August, recording an 81.6% increase in deliveries from a year ago. On a monthly basis, deliveries were 6.2% higher than the 10,052 cars sold in July.
Price Action: U.S. shares of Nio ended Thursday down 5.6% at $18.795, before falling 0.4% in extended trading, according to data from Benzinga Pro.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Bo Pei, a U.S. analyst at Tiger Securities, lowered his estimate for Nio Inc's NIO shipments in the third quarter by 12%, according to a research note.
What happened: "Due to weaker demand and industry competition, we are lowering the Q3 delivery estimate by 12% from 41 718 to 36,856," Pei said in his note analyzing the Chinese electric vehicle company.
Also read: Nio August EV deliveries increase, unlike the larger trend of Rivals Xpeng, Li Auto See numbers falling sequentially
Key Risks: Key risks facing Nio include a highly competitive electric vehicle market led by Tesla Inc TSLA and increased scrutiny of Chinese companies by US securities regulators securities, Pei said.
"As a Chinese company, Nio may face greater data security scrutiny when entering overseas markets," he added.< /p>
Rating unchanged: Pei maintained his "buy" rating on Nio, with a price target of $35.
“Our price target of $35 (unchanged) is based on estimated sales of 3.8x2023 of $15 billion. We note that 3.8x is significantly lower than Tesla's current level of 7.8x,” Pei said.
Deliveries: Nio sold 10,677 cars in August, recording an 81.6% increase in deliveries from a year ago. On a monthly basis, deliveries were 6.2% higher than the 10,052 cars sold in July.
Price Action: U.S. shares of Nio ended Thursday down 5.6% at $18.795, before falling 0.4% in extended trading, according to data from Benzinga Pro.
© 2022 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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