US Tiger Securities analyst Bo Pei has lowered its estimate for Nio Inc‘s NEVER Third-quarter shipments up 12%, according to a research note.
What happened: “Due to weaker demand and industry competition, we’re lowering the third-quarter supply estimate by 12% to 36,856 from 41,718,” Pei said in his note, which analyzed the Chinese electric vehicle company.
Top Risks: Among the biggest risks Nio faces is a highly competitive EV market, led by Tesla Inc TSLA and increased scrutiny of Chinese companies by US securities regulators, Pei said.
“As a Chinese company, Nio might face stricter data security scrutiny when entering foreign markets,” he added.
Rating Unchanged: Pei maintained a Buy rating on Nio with a price target of $35.
“Our price target of $35 (unchanged) is based on 3.8x estimated sales of $15 billion in 2023. We would like to note that 3.8x is significantly lower than Tesla’s current level of 7, 8x,” Pei said.
deliveries: Nio sold 10,677 cars in August, reporting an 81.6% year-on-year increase in deliveries. Month-on-month deliveries were 6.2% higher than the 10,052 cars sold in July.
price action: U.S. shares of Nio closed down 5.6% at $18.795 on Thursday, before falling 0.4% in extended trading Data from Benzinga Pro.
