This article first appeared on GuruFocus.
Nio (NYSE:NIO) shares fell about 2% on Tuesday, marking a ninth straight daily decline ahead of the Chinese EV maker’s third-quarter earnings scheduled for Nov. 25 before the U.S. market opens.
Despite the pullback, the stock is up about 37% year to date, helped by new models such as the L90 and ES8 and stronger October deliveries.
Wall Street expects Nio to post a Q3 loss per share of about $0.23, an improvement from a loss of $0.30 a year earlier. Analysts forecast revenue near $3.12 billion versus $2.6 billion in the year-ago quarter.
Investors will focus on updates about recent launches, delivery momentum and margin trends as management outlines cost-reduction steps.
The company’s expanding charging and battery-swap infrastructure is noted as a supporting factor, but high debt levels and negative cash flow remain key risks.
Based on the one year price targets offered by 22 analysts, the average target price for NIO Inc is $6.83 with a high estimate of $9.01 and a low estimate of $3.00. The average target implies a upside of +14.24% from the current price of $5.98.
Based on GuruFocus estimates, the estimated GF Value for NIO Inc in one year is $10.64, suggesting a upside of +77.93% from the current price of $5.98.