Jefferies Lowers PT on Nio to $5.10

Jefferies analyst Xiaoyi Lei maintained a ‘Hold’ rating on Nio, while lowering the price target to $5.10.

“Nio reported 2Q24 results with rev up 98.9% YoY to RMB17.4bn and net loss narrowed by 2.5% QoQ to c.RMB5.1bn (vs. our est. net loss of RMB4.5bn).

2Q24 vehicle margin was on par with mgmt. guidance at 12.2%.

3Q24 delivery target of 61k-63k units came in line.

Moreover, Nio sees overall vehicle margin to reach 15% in 4Q24, and aims for GPM of 25% for Nio brand longer term.

JEF view.

While better operating leverage can be expected with L60 starting mass deliveries, sales channel expansion, combined with construction of battery swap stations, could still cloud Nio’s profit outlook in 2H.

We fine-tuned 2024/25E EPS to RMB -10.2/-5.4. Maintain Hold with PTs of $5.1 for Nio-US and HKD37.5 for Nio-H.”

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