NIO Inc. (NYSE: NIO) bucks recent downgrade, sees stock rise despite widespread EV stock downgrades by Wall Street analyst.
Vijay Rakesh, an analyst at Mizuho Securities, has revised the rating of NIO stock to “neutral” and set a price target of $5.50 per share. While this target suggests a modest upside potential compared to the current price of $4.98, Rakesh remains cautious about the prospects of the Chinese EV manufacturer and the EV market overall.
Despite the downgrade, NIO stock has shown resilience at the beginning of the week, closing Monday’s trading session with a 0.41% gain. This positive performance in the face of an analyst downgrade is noteworthy, given the turbulent year NIO has experienced thus far.
The Wall Street sentiment towards the EV sector has been souring, with an increasing number of analysts issuing negative outlooks. Rakesh’s commentary on the broader EV landscape reflects a tempered optimism.
He noted,
“While we remain constructive on the broader EV landscape with the LT trend to electrification, near-term EV demand and tightening liquidity are creating challenges into 2025E.”
Rakesh also downgraded Tesla (NASDAQ: TSLA) and Rivian (NASDAQ: RIVN) while raising the price target on General Motors (NYSE: GM) stock, maintaining a “buy” rating on the latter.
Investing.com reported,
“Mizuho now anticipates approximately 15% year-over-year growth for the EV market in 2024, compared to their previous estimate of 25% and against IHS’s forecast of roughly 33%. For 2025, they project a 17% increase, while IHS predicts a 34% rise.”
NIO (NYSE: NIO) Stock Reaction
NIO stock rose 0.41% to close at $4.91 on Monday. The traders had exchanged hands with 56,419,440 (56.41 million) shares compared to the average daily trading volume of 60.26 million.
