- The stock price of Nio Inc (NYSE: NIO) has received a price target of $80.30 by Nomura. These are the details.
The stock price of Nio Inc (NYSE: NIO) has received a price target of $80.30 by Nomura. And Nomura analyst Martin Heung initiated a “Buy” rating on the company.
Heung cited that he likes NIO for its “Tesla-like top-down approach” for launching the electric vehicle pipeline with the ES8 luxury flagship followed by more budget options and variations. This business straegy enables the profits from the expensive models to fund the development of more affordable options such as the ES6 and EC6.
As a result, NIO has established itself as a premium auto brand where “car buyers are willing to pay a price similar to those for entry-level models of major European luxury original-equipment-manufacturers.”
And Heung pointed out that NIO’s battery leasing service will also drive “the way for the revolutionary concept of battery swapping.” This will drive lower up-front costs and set up a solid revenue stream for NIO in the future. Plus it will enable NIO to have a competitive advantage against traditional recharging.
Heung decided the $80.30 price target based on a 25% discount on Tesla’s current price-to-sales ratio of 26 times.
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