NIO Stock (NYSE: NIO) has shown many fluctuations in recent times.
On March 11, government support for the company’s batteries technology increased approximately 10 %, from $ 4.40 to $ 4.91. The wave of optimism continued. NIO closed at $ 5.18 on March 19, two days before the company was issued Call profits Q4.
Despite these high hopes, the separate report turned into disappointment. The Electric Vehicle Company (EV) has a loss of $ 0.43 per share, higher than the unanimity estimates of $ 0.42. Revenue, at a value of $ 2.70 billion, also low -performance analysts estimated at $ 2.85 billion.
Mattle clay, the Q1 2025 instructions also failed to meet estimates.
As a result of the time of the press on March 21, NIO’s shares changed its hands at $ 4.43. This last transition by 14.47 % to the downside may almost erase stock revenues (YTD), which is currently 1.49 %.
Despite the collapse, one of the Wall Street analysts kept an optimistic look. Let’s take a closer look at the logical basis.
The banking giant is still optimistic about NIO stock expectations
In the wake of the profit invitation, the Morgan Stanley Equity Tim Tim Tim Hsiao reiterated a previous “weight gain” rating on NIO shares. In addition, the researcher doubled on the previous price target – $ 5.90.
If HSIO’s future look, it will be 33.18 % of the current prices. So, what sparked this strong vote of confidence?
While the analyst noted that the net net loss of the company came at the top of what Morgan Stanley expected, he also indicated that the revenues came actually with the low party of the banking giant estimates.
In addition, HSIAO indicated that the company was characterized by an unwanted loss of about $ 73 million in the fourth quarter, which greatly reflects losses from the reassessment of its external assets. To prelude, the analyst saw that operating expenses were “largely fixed” once ONVO channel expansion It is taken into account.
How do you compare this to Wall Street’s intermediate expectations? Well, it’s a little more difficult – but on average, analysts have set a $ 5.21 target for NIO before the profit call. Although we are likely to see a large number of reviews in the coming days and weeks, the profit invitation was not so horrific that would reasonably cause significant declining reviews in terms of price expectations.
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