WKHS - Is NIO Stock A Buy Sell Or Hold After Recent Earnings?

• NIO reported mixed fourth quarter 2021 results on March 24, 2022, after the market closed, but its guidance for Q1 2022 disappointed.
• COVID lockdowns and heightened inflationary pressures have clouded the production and sales outlook for Q2 2022. The consensus revenue and EPS estimates for the quarter have room to adjust downwards.
• With the bloodletting amid continued revenue ramp up, the PS ratio of NIO has compressed from 19.3 times to only 4.0 times presently. Tesla has PS ratio in the teens.
• Seeking Alpha’s quant system has rated NIO stock as a “Sell” with a low score of 1.61, but the consensus price target by Wall Street analysts has NIO with an upside of 172%.
• Given the treacherous trading environment and operational risks (e.g. being denied American chips) facing NIO, amid the steep devaluation in its stock, I rate NIO as a “Hold”.

For further details see: