J.P. Morgan Lifts Nio Stock Price Target Amid Strong L90 Sales, Maintains Neutral Rating

J.P. Morgan has raised Nio's price target to $4.80 per share, citing strong L90 sales and optimism about new product launches and refreshed models. The analyst maintained a Neutral rating, noting Nio's volatile track record and competitive EV landscape. L90's launch pricing was a surprise, putting it in direct competition with affordable six-seater SUVs. New upcoming models could extend momentum, but investors should watch L90 sales closely.

J.P. Morgan has raised NIO Inc.'s (NYSE:NIO) price target to $4.80 per share, citing strong sales of the L90 SUV and optimism about new product launches and refreshed models. The analyst maintained a Neutral rating, acknowledging NIO's volatile track record and the competitive nature of the electric vehicle (EV) landscape.

The L90's launch pricing was a surprise, positioning it in direct competition with affordable six-seater SUVs. The analysts at J.P. Morgan noted that the L90's pricing undercuts rivals like Li Auto's L8 by 17% while offering similar features, and comes close to the price of Tesla's five-seat Model Y. This pricing strategy aims to address NIO's historical issue of insufficient volume in past sales.

Macquarie analysts have also noted that the L90's family-focused positioning, emphasizing space and usability over advanced tech, could be a key factor in driving sales. They project monthly sales for the L90 to reach 8,000-12,000 units, describing the vehicle as a potential "category killer" in its segment [1].

New upcoming models could extend the momentum, but investors should watch L90 sales closely. J.P. Morgan's upgrade in price target reflects a positive outlook on NIO's ability to capitalize on its new offerings and strengthen its market position. However, the analyst's Neutral rating underscores the need for investors to be cautious about the company's volatile track record and the competitive nature of the EV market.

NIO Inc. is a Chinese electric vehicle manufacturer that designs, builds, and sells premium smart EVs. The company operates an expansive NIO Power network to support delivery growth and energy subscription services [1].

References:
[1] https://finance.yahoo.com/news/macquarie-upgrades-nio-nio-outperform-193929104.html