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Carla Lee wrote a post · Mar 21, 2022 06:50

BREAKING: DEUTSCHE BANK LOWERS NIO’S PRICE TARGET TO $50 FROM $70, KEEPING THE BUY RATING

Deustche Bank analyst Edison Yu released on Sunday a note lowering NIO’s price target from $70 to $50, maintaining the Buy rating. Based on the last closing price at $20.86, the price target represents an upside of 139.7% for the next 12 months. The analyst added that “the main risks for NIO are supply chain constraints and regulatory scrutiny.” Yu also warned on “supplier shortages for chips and battery cells” that can limit NIO’s sales growth.
BREAKING: DEUTSCHE BANK LOWERS NIO’S PRICE TARGET TO $50 FROM $70, KEEPING THE BUY RATING
“Looking ahead, we can envision the stock being choppy until late 2Q when ET7 deliveries start picking up, paving the way for the stock to outperform for the rest of the year on a relative basis. We think the narrative of going from 10k/month in deliveries to 25k/month exiting the year can alleviate many investor concerns about demand and supply chain management.
We lower our price target by $20 to $50, based on 5.0x 2023E EV/Sales or 40-50% discount to US comps such as $Tesla (TSLA.US)$ / $Lucid Group (LCID.US)$ (vs. prior 8.0x), to account for the derating in Chinese ADRs following concerns about delisting/geopolitical risks, but reiterate our Buy rating, seeing significant long-term upside once the shareholder base stabilizes and NIO gets credit for its upcoming product cycle inflection. The main risks for $NIO Inc (NIO.US)$ are supply chain constraints and regulatory scrutiny.
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Carla Lee
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