Home Stock Nio Q4 highlights: Deutsche Bank analyst sees upside to $50

Nio Q4 highlights: Deutsche Bank analyst sees upside to $50


Nio Inc (NYSE: NIO) on Friday reported better-than-expected sales for its fiscal fourth quarter. Shares are still down 10% on weak guidance for deliveries.

Nio Q4 highlights

Nio lost 16 cents on a per-share basis in fiscal Q4.Sales printed at about $1.60 billion for the recent quarter.Wall Street had forecast 16 cents a share of loss on $1.50 billion in sales.

Gross profit margin stood at 17.2% – missing estimates by 0.4%, and down 3.1% sequentially. In the earnings press release, CEO William Bin Li said:

We concluded the year 2021 on a strong note with an annual delivery of 91,429 vehicles in total, representing an increase of 109.1% year-over-year, despite all the challenges, including the supply chain volatilities in particular.

Guidance and analyst’s remarks

In fiscal Q1, Nio expects up to 26,000 deliveries versus analysts at roughly 28,000. Ahead of the earnings, Deutsche Bank’s Edison Yu reiterated Nio as his top pick and said on CNBC’s “Closing Bell”:

Nio has come down to levels last seen in mid-2020. At that time, the EV penetration was just 4.0% to 5.0%. Volume was less than half of what it is now. So, you can see that with Nio, there’s a bottom that’s probably there.

Yu has a price target of $50 on Nui that represents a 150% upside from here. At $20, the stock is down 40% for the year and more than 50% from its high in early November 2021.

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