NIO - 1 Wall Street Analyst Cuts Nio's Price Target by 23%: Here's Why He's Right
2024-03-11 15:17:45 ET
Although it has plunged more than 36% since the start of the year, Nio (NYSE: NIO) stock is poised to hit the brakes on its downward path and drive back up -- just not as much as he previously thought.
While Tim Hsiao, an analyst at Morgan Stanley , had previously thought that Nio stock would touch $13 a share, he cut his price target on Monday, thinking now that the stock is headed to $10. Let's take a look at the basis of Hsiao's outlook on Nio stock and why he could be right.
Most investors interested in Nio are looking to power their portfolios with an electric vehicle (EV) maker that offers significant growth potential. However, according to Hsiao, the company has a rocky road ahead that could last as long as two years. The analyst reduced expectations for Nio's shipments in 2024 and 2025, and he foresees Nio incurring a steeper loss than what was reported in 2023 because the company is working through a restructuring. Furthermore, Hsiao doesn't expect Nio to achieve profitability until 2026.
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1 Wall Street Analyst Cuts Nio's Price Target by 23%: Here's Why He's Right