Written by Cláudio Afonso | LinkedIn | X
BofA Securities analyst Ming Hsun Lee published Thursday a new research note after the electric vehicle maker Nio published better-than-expected earnings results for the second quarter of the year.
The analyst raised the price target on the stock to $5.30 — from $5.00 — while maintaining a Neutral rating as Nio reported an overall Gross Profit Margin (GPM) above the expectations from Bank of America.
“Total revenue came in at RMB17bn, up 99% YoY/76% QoQ. Overall GPM was up 8.7ppt YoY/4.8ppt QoQ to 9.7 per cent, better than our expectation of 7.9 per cent. Vehicle GPM was up 6ppt YoY/3ppt QoQ to 12.2 per cent, on component price cut and production efficiency improvement,” Ming Hsun Lee wrote.
Based on Wednesday’s closing price of $4.24 per share, the new price target indicates an upside potential of 25 per cent. Following the 14.39 per cent surge on Thursday, Nio stock is now 9 per cent below the price target from Bank of America.
The company reported a vehicle margin of 12.2 per cent in the second quarter, nearly doubling from the 6.2 per cent reported a year ago and up sequentially from the 9.2 per cent reported in the first three months of the year.
“Opex-to-sales ratio was 39.5 per cent, down 30.7ppt YoY/ 19.8ppt QoQ. Operation loss was RMB5.2bn, in line with our forecast. Non-GAAP net loss was RMB4.5bn in 2Q24, narrowing by 17 per cent YoY/7 per cent QoQ, largely in line with our estimate.”
Earlier in the day, also Morgan Stanley analyst Tim Hsiao updated the firm’s target on Nio with an Overweight rating and a $6.10 price target.
Written by Cláudio Afonso | LinkedIn | X
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The post Bank of America Raises Nio’s Price Target, Stock Surges 14% first appeared on EV.