9 Best Fundamentally Strong Penny Stocks to Buy According to Analysts

3. NIO Inc. (NYSE:NIO)

Upside Potential as of December 19, 2025: 41.20%

Market Capitalisation: $12.62 billion

Number of Hedge Fund Holders: 34

As of December 19, NIO Inc. (NYSE:NIO) has mixed analyst sentiment, with slightly more than 50% of analysts covering the stock assigning a Buy rating, nearly 40% holding a cautious view, and the remaining 3% recommending a Sell. While the target price ranges from $4.03 to $9.10, the median price target of $7.04 reflects an upside potential of 41.20%.

Among the 53% analysts recommending buying the stock is an analyst from Morgan Stanley, who maintained the ‘Buy’ rating on the company with a price target of HK$54 on December 7. When converted to $6.94, the price target translates to an upside potential of approximately 39%.

When NIO Inc. (NYSE:NIO) announced its third-quarter results, it reported an EPS of ¥-1.140 (RMB), ¥0.45 higher than the consensus forecast of ¥-1.590, and a revenue of ¥21.79 billion in contrast to the analyst estimate of ¥22.3 billion. Since then, several analysts have revised their outlook. On November 25, BofA Securities trimmed the price target on the company, with an unchanged Neutral rating. On the same day, Macquarie downgraded the company to Neutral from Outperform, with a reduced price target from $6.70 to $5.30.

During the earnings call, management reaffirmed the company’s commitment to “a battery electric vehicle roadmap featuring chargeable, swappable, and upgradable batteries.” With that said, NIO Inc. (NYSE:NIO) forecasts fourth-quarter revenue between ¥32.760 billion and ¥34.000 billion relative to the consensus guidance of ¥34.700 billion.

NIO Inc. (NYSE:NIO) is a Chinese company specializing in smart electric vehicles. Incorporated in 2014, the company offers electric SUVs, smart electric sedans, power solutions, Power Swap, and Power Charger and Destination Charger.