Nio Stock Has Just 12% Upside Now, According to 1 Wall Street Analyst
Chinese electric vehicle (EV) maker Nio (NYSE: NIO) has been a success story, bouncing back from a near-death experience in early 2020 to deliver over 160,000 EVs last year.
But with China's EV market slumping, Wall Street is getting concerned. Analysts at Securities opened the week by cutting their bank's rating on Nio's American depositary shares to "neutral," from "buy," with a price target suggesting only a modest upside.
Mizuho's analyst Vijay Rakesh wrote that while the longer-term trend toward EVs remains intact in China and elsewhere, slipping demand and tightening liquidity are creating challenges for EV makers that will persist into next year. The bank's team sees EV sales decelerating faster than they had expected: They now forecast just 15% growth in 2024, down from 25% previously.
Source Fool.com
