On June 3, Mizuho lowered the price target on Nio Inc. (NYSE:NIO) from $4 to $3.50 and maintained its Neutral rating on the stock.
Vijay Rakesh from Mizuho made the update following Nio’s first quarter 2025 results. The Chinese smart EV maker missed both the revenue and earnings estimates for the quarter, with revenue of around $1.67 billion, underperforming by $56.14 million. However, Rakesh retains his neutral view on Nio as the company delivered around 73,500 units in Q1, ahead of the 69,900 consensus, and up 75% quarter-over-quarter.
A fleet of electric vehicles lined up in front of a rumbling renewable energy production facility.
Rakesh pointed out that competition in China remains strong, but Nio’s delivery guidance for Q2 is promising with 2025 model year refreshes. Nio will continue to produce Onvo and Firefly, meeting the market demand. The company expects to deliver between 72,000 and 75,000 units in Q2, indicating a 25.5% to 30.7% increase from a year ago. The analyst believes that this will improve gross margin, driven by Nio’s new model launches in the second half of 2025.
As of May, Nio has delivered over 89,000 vehicles in 2025, representing nearly 35% growth year-over-year. Rakesh sees NIO stock as fairly valued based on its operational and financial performance.
Nio Inc. designs and manufactures smart EVs, offering premium vehicles under the NIO brand, family-oriented smart EVs through the ONVO brand, and small high-end smart EVs under the FIREFLY brand.
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Disclosure. None.
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