Nio (NIO, Financial) and Rivian (RIVN) were once rising stars in the electric vehicle market but have since seen significant value declines. Nio's stock, once peaking at $62.84, now trades around $4, while Rivian's has dropped from a high of $172.01 to approximately $12. The two companies have struggled with production issues and economic headwinds, leading to decreased deliveries and sustained losses.
Despite these challenges, Nio has shown signs of recovery in 2024 with increased vehicle deliveries and improved vehicle margins, boosted by new model sales and expansion in Europe. Conversely, Rivian faces production delays and competitive pressures but has improved its gross margin by reducing costs and expanding its services segment. Analysts remain cautious, projecting modest revenue growth for both companies through 2026. However, with Nio trading at a more appealing valuation, it may present a better contrarian investment opportunity.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 24 analysts, the average target price for NIO Inc (NIO, Financial) is $6.07 with a high estimate of $12.67 and a low estimate of $3.75. The average target implies an upside of 59.15% from the current price of $3.82. More detailed estimate data can be found on the NIO Inc (NIO) Forecast page.
Based on the consensus recommendation from 26 brokerage firms, NIO Inc's (NIO, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for NIO Inc (NIO, Financial) in one year is $14.83, suggesting a upside of 288.73% from the current price of $3.815. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the NIO Inc (NIO) Summary page.
