This article first appeared on GuruFocus.
Sep 16 – Nio (NYSE:NIO) gained more than 4% on Monday as investors welcomed two key developments, the upcoming launch of its ES8 SUV and an industry-wide pledge to improve supplier payments.
Deliveries of the new ES8, a three-row electric SUV, are scheduled to begin this weekend. The model represents Nio’s push to compete directly with Tesla’s (NASDAQ:TSLA) Model Y in China’s premium EV segment. Offered in six- and seven-seat versions, the ES8 is positioned as Nio’s largest battery-electric SUV to date, giving the company fresh momentum in a crowded market where pricing pressure has weighed on margins this year.
The stock also received support from a joint pledge by Chinese automakers to pay suppliers within 60 days. Nio, along with Li Auto (NASDAQ:LI) and BYD (BYDDY), endorsed the initiative, aiming to stabilize supply chains and ease concerns about cash flow pressures from the ongoing EV price war.
Wall Street currently maintains a Hold consensus on NIO shares, with analysts emphasizing that the success of the ES8 launch will be critical to Nio’s near-term growth outlook.
Based on the one year price targets offered by 22 analysts, the average target price for NIO Inc is $6.15 with a high estimate of $8.99 and a low estimate of $3.00. The average target implies a downside of -5.25% from the current price of $6.49.
Based on GuruFocus estimates, the estimated GF Value for NIO Inc in one year is $9.74, suggesting a upside of +50.08% from the current price of $6.49. Gf value is Gurufocus’ estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business’ performance. For deeper insights, visit the forecast page.