HSBC Upgrades NIO to Buy with $6.80 Price Target
HSBC analyst Yuqian Ding upgraded NIO (NYSE: NIO) from Hold to Buy with a price target of $6.80 (from $4.80).
“NIO reported its first quarterly net profit in 4Q25 (RMB0.12bn), supported by strong volumes and disciplined cost management.
Vehicle volumes increased 43% q-o-q and 71% y-o-y, significantly outperforming the broader EV market (5% q-o-q and 16% y-o-y).
Profitability also improved in quality, with vehicle gross margin rising to 18.1% (up 3ppt q-o-q), largely driven by a favourable product mix following robust ES8 deliveries.
Operating leverage strengthened as revenues grew, while costs were reduced; SG&A and R&D each declined 15% q-o-q, primarily reflecting organisational optimisation and tighter cost-control execution.
We expect above-industry visibility for earnings in 1Q26, underpinned by continued mix benefits and less disruption to volumes from seasonal effects and the transition in subsidies.”
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