Nio’s stock dives after JP Morgan slash target price by more than 40% to 5 USD
$NIO Inc(NIO.US$ $XPeng(XPEV.US$ $Tesla(TSLA.US$ $BYD COMPANY(01211.HK$ The article reported that J.P. Morgan slashes Nio price target by more than 40% as concerns over slowing sales momentum grow. Analyst Nick YC Lai cut his rating on the stock to underweight from neutral, and slashed his price target by 41%, to $5 from $8.50. The new target still implies a further 10% downside from current prices. The stock hasn’t closed as low as $5 since June 2, 2020.
Reasons for the downgrade:
Reasons for the downgrade:
1. Nio only has one new model, called “Alps,” targeting the mass market this year, and that may not even hit showrooms until the fourth quarter.
2. The lack of new models comes as “competition in the mass market may only intensify,” given expected new launches from peers like Tesla, XPeng and BYD.
3. Smartphone maker Xiaomi eventual entrance into the EV market will introduce “another significant competitor” in the mass market.
Comment: The article didn't address long term reasons for the downtrend like cash burning projects and share dilution. You may read related articles here:
2. The lack of new models comes as “competition in the mass market may only intensify,” given expected new launches from peers like Tesla, XPeng and BYD.
3. Smartphone maker Xiaomi eventual entrance into the EV market will introduce “another significant competitor” in the mass market.
Comment: The article didn't address long term reasons for the downtrend like cash burning projects and share dilution. You may read related articles here:
Source:
$BYD COMPANY(01211.HK$ $BYD Co.(BYDDF.US$ $S&P 500 Index(.SPX.US$ $Nasdaq Composite Index(.IXIC.US$ $Tesla(TSLA.US$ $VOLKSWAGEN A G(VWAGY.US$ $NIO Inc(NIO.US$ $Li Auto(LI.US$ $XPeng(XPEV.US$ $General Motors(GM.US$ $Ford Motor(F.US$ $Rivian Automotive(RIVN.US$ $MERCEDES-BENZ GROUP AG(MBGAF.US$ $TOYOTA MOTOR CORP(TOYOF.US$ $GEELY AUTO(00175.HK$ $Stellantis NV(STLA.US$
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I reflected trading experiences by writing journals. My comments are for educational purposes not financial advice.
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Uncle Leon sg : When the banks downgrade the stock it’s means it’s time to buy
ZnWCOP Uncle Leon sg: That's what someone said a month ago and the share price kept going down.
A quick bounce doesn't negate the long-term Nio stock downtrend
https://www.moomoo.com/community/feed/111963872952326?share_code=00JERx