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Goldman Sachs Cuts EV Maker Nio (NIO) Stock Price Target by Almost 50%. Here’s Why -Breaking

by Mike Robinson

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© Reuters. Goldman Sachs Reduces the EV Nio (NIO Stock Price Target by Nearly 50% Here are the reasons.

Fei Fang (Goldman Sachs) was an analyst who started Hong Kong-Kong shares of Nio, NYSE: stock at Buy and HK$224 target.

This price target represents a revised price objective for ADR shares: $29.00 per share, compared to the $56.00 previously.

Nio is subject to significant greenflation pressure due to its high battery use (75KWh /100KWh). Nio is not announcing pricing changes for cost pressure this year and has not passed the subsidy reduction on to its customers. In 2022-24E, the company’s gross profit will be lowered by between 2-4pp. “Our valuation is unchanged at DCF with WACC revised from 9% to 14% (at 6.5% equity risk premium, 3.5% risk-free rate and 1.58 beta), Fang stated in a memo to clients.

NIO ADRs at Buy At China Renaissance were restored earlier today at a $32.40 price target.

Nio shares are down by 4% today

By Senad Karaahmetovic

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