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JP Morgan dismantles Short-seller report, remains positive on NIO EV

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“Our segmented cash solution allows us
to invest aligned with our values, which include liquidity and security over yield,”
says Sasa Wang, Director, Treasury, NIO. Note that cost basis is calculated and stored in thousands, so small quarterly changes in shares frequently
result in a cost basis of zero. One share of NIO stock can currently be purchased for approximately $9.04. 29 employees have rated NIO Chief Executive Officer William Li on William Li has an approval rating of 89% among the company’s employees. Click the link below and we’ll send you MarketBeat’s list of seven best retirement stocks and why they should be in your portfolio.

  • Moody’s currently has an AAA stable rating on the U.S. government.
  • Tesla’s record on profitability has also been dismal and it has posted a net profit in only a handful of quarters in its history.
  • The Dollar Index remained positive this morning after spiking to a high of $105.78, its highest level since March 8.
  • Since then, NIO stock has decreased by 7.3% and is now trading at $9.04.

When the CEO of Grizzly Research was asked about how many vehicles NIO has on the roads as of today and replied “100,000 vehicles”. According to JPMorgan analyst Nick Lai, NIO’s Q4 was “solid,” and even a “meaningful beat” if you back out the “unrealized foreign exchange losses” that were the primary reason NIO lost twice as much money as analysts had anticipated. Earnings for the S&P 500 companies are forecast to edge lower by 0.2% and decline for the fourth quarter in a row, but the outlook is improving, according to FactSet senior earnings analyst John Butters. The 0.2% decline for ther entire index is better than the 0.4% decrease that was forecast on June 30, and would prove the smallest during the four-quarter-long skid. Meanwhile, a 0.2% decline in individual stock third quarter per-share earnings estimates since the end of the second quarter is far less than the five-year average decline of -3.6% and 10-year average of -3.4%, FactSet said. To be sure, there are valid concerns over the soaring valuations of electric vehicle makers.

NIO Inc. Analyst Ratings

Dow — Shares of the petrochemicals company rose 1.6% Monday during premarket trading. JPMorgan upgraded the stock to overweight from neutral, citing potential upside from higher oil prices. “Sentiment on SEE (and the broader packaging space) has been highly negative given share price weakness, persistent vol challenges, and downward earnings revisions,” Pettinari said in a Monday note. “We see 3Q results as a potential catalyst, with upside from cost saves and reiterated volume outlook after a sharply lowered bar in 2Q.”

The EC-6 and ES6, ES7, and ES8 are all SUV crossovers with seating from 5 to 7 people. Upcoming models are the ES3 SUV crossover and the EF9 minivan. Models in development include the ET full-size sedan and the Eve station wagon, a full autonomous compact vehicle. In fact, while conversations are still expected to center around how strong demand is right now, given a strong line-up which “provides better visibility and predictability,” investors should find NIO intriguing, according to Hsiao.

  • Hsiao covers the Consumer Goods sector, focusing on stocks such as Nio, Li Auto, and XPeng, Inc.
  • NIO’s valuation multiples are the highest ever for the company.
  • Yet meeting its newly broadened appetite for returns proved challenging at a time of ultra-low rates.
  • The company is scheduled to release its next quarterly earnings announcement on Thursday, November 9th 2023.
  • Portfolio manager Kamil Dimmich of North of South Capital says the word on the ground is that stocks in technology firm Nvidia are cheap – even as he may personally not think so.

NIO’s valuation multiples are the highest ever for the company. Using Put/Call Ratio as an indicator of investor sentiment overcomes one of the key deficiencies of
using total institutional ownership, which is that a significant amount of assets under management are
invested passively to track indices. Passively-managed funds do not typically buy options, so the put/call
ratio indicator more closely tracks the sentiment of actively-managed funds. Since then, NIO stock has decreased by 7.3% and is now trading at $9.04. Nio Inc.’s automobiles are built around three key platforms that include a sports car, a line of SUV/crossovers, and a sedan. The EP-9 sports car is the firm’s first model and has been in production since 2016.

NIO is also offering “various types of content (e.g. entertainment)” and also services such as battery replacement, both of which may provide incremental revenue above and beyond the revenue from selling the cars in the first place. Analyst Christyan Malek upgraded the entire global energy sector to an overweight candle pattern forex rating in a research note on Friday, saying that an energy “supercycle” could eventually drive up Brent crude prices as high as $150 a barrel. The Wall Street bank said Indian bank stocks have underperformed over the past three to six months despite a positive outlook for lending growth in the sector.


The S&P 500 climbed on Monday to kick off the final week in a September that has seen big losses so far. TipRanks has tracked 36,000 company insiders and found that a few of them are better than others when it comes to timing their transactions. See which 3 stocks are most likely to make moves following their insider activities. NIO has been rated by Bank of America, Citigroup, CLSA, Deutsche Bank Aktiengesellschaft, JPMorgan Chase & Co., Mizuho, Sanford C. Bernstein, and UBS Group in the past 90 days. Alternatively, if you wish to trade derivatives, we also have reviewed a list of derivative brokers you can consider.

Carnival Earnings: Strong Booking Momentum Weighed Down by Higher Near-Term Cost Outlook

Tesla for instance trades at an NTM (next 12-month) price to sales multiple of 11.5x. Its market capitalization recently exceeded the combined market capitalization of Toyota Motors, Volkswagen, Ford, General Motors, and Fiat Chrysler. Tesla’s record on profitability has also been dismal and it has posted Forex trading secrets a net profit in only a handful of quarters in its history. NIO has delivered 26,375 electric cars in the first nine months of the year—up 114% as compared to the corresponding period in 2019. The sales growth expanded in the third quarter where the company’s deliveries increased by an impressive 154%.

Financial Calendars

Alongside that downgrade comes a new price target for NIO stock. The firm dropped its price target for the EV company’s shares from $14 each to $10 each. That still represents a 13.3% upside from its prior closing price. For comparison, the analysts’ consensus price target for NIO shares is $18.98. He has been writing extensively on global markets for the last eight years and has written over 7,500 articles. He mainly covers metals, electric vehicles, asset managers, and other macroeconomic news.

News and Social Media Coverage

In a report released yesterday, Tim Hsiao from Morgan Stanley maintained a Buy rating on Nio (NIO – Research Report), with a price target of $16.10. Morgan’s Nick Lai “tactical” downgrade of the China-based electric vehicle maker, citing concerns that margins could deteriorate further the company will miss delivery goals. In Q4, NIO reported $1.02 billion in quarterly sales, inching past analysts’ predicted $1.01 billion. On the bottom line, however, the 17,353 EVs NIO delivered in the fourth quarter of 2020 cost the company a GAAP net loss of $0.16 per share, and an “adjusted” loss of $0.14 per share — twice the $0.07 pro forma loss Wall Street had predicted.

“What you want to do is look for when bad news becomes bad news and be ready to attack that kind of weakness — and we’re getting closer to that point,” Dwyer told CNBC’s “Squawk Box” on Monday. In the banking sector, he said his only exposure is in the “biggest and best U.S. banks,” which comprise of JPMorgan, Morgan Stanley and Goldman Sachs. The outlook for financials in the medium-term remains challenging, according to Trivariate Research’s Adam Parker.

To calculate quarterly performance, we first calculate cost basis of the shares purchased during the quarter, then use
that to calculate gross profit. Battery swapping opens the door not only to long-term customer relationships via battery-swapping plans, otherwise known as BaaS or battery-as-a-service but also to the ability to sell cars without a battery which greatly reduces the price point. The company announced the opening of its 1,000th swapping station in China in the summer of 2022 and was on track at the time to begin expanding outside of China.

Following today’s downgrade, shares of NIO stock are down nearly 2%. The EV company’s stock is also down 10% since the start of the year. Trading is also somewhat light, with about 25 million shares on the move. Lai noted that one bottleneck that might prevent NIO from hitting this goal is the well-publicized deficit in automotive semiconductor chip supplies (and another, constrained supplies of electric batteries). The analyst sees these reducing production rates to perhaps 7,500 units per month in Q2, but easing up thereafter. “However, central banks have not been given the all clear yet, as either growth is still surprisingly strong (the US), or inflation surprisingly stubborn (EU, UK). And quickly rising oil prices are typically a strong headwind for duration,” he added.

Citi upgrades Sealed Air Corp, says shares can rally more than 30%

Nio Inc. is engaged in the design, manufacture, and sale of electric vehicles in the People’s Republic of China, the US, and Europe. The company also manufactures electric motors, battery packs, and other components for the global EV market. Along with this, the company announced its intentions how to hedge stocks to enter the smartphone market in 2022 along with plans to outfit a production facility in Shenzen. During a Twitter Space held after the release of the report, the research firm CEO Siegfried Eggert was answering some questions from investors and enthusiasts of the electric vehicles sector.

NIO issued an update on its third quarter 2023 earnings guidance on Tuesday, August, 29th. The company provided earnings per share (EPS) guidance of for the period. The company issued revenue guidance of $2.61 billion-$2.69 billion. The firm remains positive on NIO believing that the company’s vehicle margin will “hit a trough of ~15.5% in Q but rebound strongly to ~18-19%” in the second half of 2022.

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