Bank of America Increases Nio’s PT to $7.10
BofA Securities analyst Ming Hsun Lee raised on September 3, 2025, the price target on Nio to $7.10 (from $5.00) while maintaining a ‘Neutral’ rating on the stock.
“NIO’s 2Q25 non-GAAP net loss came in at RMB4.1bn, better than BofAe.
Management guided 87k-91k units of vehicle delivery (up 41%-47% YoY) in 3Q25 and 150k in 4Q25.
In our view, the recently launched ONVO L90/NIO ES8 look competitive, in terms of space, and performance-to-cost ratio, likely signaling the company starting a strong model cycle.
L90 delivered 10k+ units in August, and 3rd gen ES8 also booked strong orders.
Factoring in latest model pipeline, we lift 2025/26/27E volume sales by 9%/19%/21%.
Meanwhile, we raise 2025/26/27E gross margin by 0.5ppt/0.7ppt/0.7ppt to reflect economies of scale.
Net-net, we expect 2025/26E non-GAAP net loss to narrow by 7%/50% vs. our previous estimates, and forecast 2027E adjusted profit (nonGAAP) to turn positive.
We lift our PO to USD7.1 per ADS (HKD55 per share) from USD5 (HKD39) driven by a higher WACC of 13.4% (12.5% prior) given the change in capital structure; the EV/Sales multiple part our valuation is unchanged (see inside for further detail).
We reiterate Neutral, as despite the strong model pipeline, in our view the positives from volume growth and a narrowing loss are already reflected in the current valuation.”
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