NIO Stock Climbs Ahead of Q2 Earnings, But Analysts Remain Divided on Future Prospects

Nio (NIO) stock has risen 21% in the past five sessions and 42% in the past three months ahead of its Q2 earnings release on September 2. Analysts expect a loss of $0.31 per share on revenue of $2.73 billion. Despite new product launches and aggressive pricing moves, Wall Street analysts remain divided on the stock's future direction, with a Hold consensus rating and an average price target of $4.62, implying 15.34% downside potential from current levels.

Nio (NIO) stock has seen a significant surge, climbing more than 21% in the past five sessions and 42% over the past three months, ahead of its Q2 earnings release on September 2. Analysts expect the company to report a loss of $0.31 per share on revenue of $2.73 billion [1]. The rally has been fueled by new product launches and aggressive pricing moves, including the introduction of the all-new ES8 SUV and price cuts across its long-range vehicle lineup to compete with Tesla's latest Model Y L SUV [1]. Additionally, investor enthusiasm around Nio's new mass-market Onvo brand, particularly the L90 SUV, has contributed to the stock's momentum [1].

Despite the positive trends, Wall Street analysts remain divided on the stock's future direction. Morgan Stanley analyst Tim Hsiao lifted his price target on Nio to $6.50 from $5.90, citing operational improvements and robust early demand for the Onvo L90 as key drivers [2]. However, J.P. Morgan analyst Nick Lai maintained a Neutral rating, acknowledging the strong early reception of the Onvo L90 but warning about the company's history of volatility and intense competition in the EV space [2].

The overall consensus rating on NIO stock is Hold, based on three Buys, six Holds, and one Sell assigned in the last three months. The average NIO stock price target of $4.62 implies 15.34% downside potential from current levels [1]. Morgan Stanley expects Nio to guide for record third-quarter sales, with deliveries of 78,000 to 80,000 vehicles, up 8% to 11% sequentially [3]. The company delivered 72,000 to 75,000 vehicles in Q2, a 72% jump from the prior quarter and 26% year over year [3].

Nio's Q2 earnings report is expected to provide more clarity on its restructuring progress and delivery momentum. Despite the near-term challenges, the company's long-term prospects remain promising, with analysts forecasting strong demand for its new Onvo L90 SUV and other models.

References:
[1] https://www.tipranks.com/news/nio-stock-climbs-ahead-of-q2-but-wall-street-remains-divided
[2] https://www.tradingview.com/news/gurufocus:3de405d14094b:0-morgan-stanley-sees-nio-guiding-for-record-q3-sales-on-strong-l90-backlog/
[3] https://www.reddit.com/r/Nio/comments/1mve44d/nio_to_report_q2_earnings_on_tuesday_2nd/