Bank of America Cuts Price Target on Nio to $4.30

BofA Securities analyst Ming Hsun Lee lowered on June 3, 2025, the price target on Nio to $4.30 (from $4.90), while maintaining a ‘Neutral’ rating.

“Nio announced 1Q25 results and hosted a conference call on 3 June.

Total revenue came in at RMB12bn, up 22% YoY/down 39% QoQ and largely in line with our expectation.

The YoY growth was driven by 40% YoY vehicle sales volume growth but lower ASP (down 15% YoY) upon product mix change and destocking of old version models.

Overall GPM was up 2.7ppt YoY/down 4.1ppt QoQ to 7.6%, worse than our expectation of 8.1%.

Opex to sales ratio came in at 61.0%, up 1.6ppt YoY/up 18.6ppt QoQ.

Operation loss was RMB6.4bn, higher than our forecast.

Non-GAAP net loss was RMB6.3bn in 1Q25, up 28% YoY/down 4% QoQ, missing our estimate of RMB5.6bn.”

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