Bank of America reiterated a Buy rating on Nio (NYSE:NIO) and raised their 12-month price target on the stock to $16.20 (From $15.40) after the electric vehicle maker reported its monthly deliveries numbers.
NIO recorded a significant increase in deliveries in July, with 20.5k units, marking a remarkable growth of 104% compared to the previous year and an impressive 91% increase compared to the previous month. Notably, the new ES6 model contributed significantly to this achievement by surpassing 10k units in deliveries during the same month. Additionally, the sales for the month of July totaled 75k units for NIO's YT model, demonstrating YoY growth of 23%.
Analysts wrote in a note, “We expect NIO’s vehicle delivery to be 20-21k per month in August and September due to auto component constraint, but we believe component supply will improve in 4Q23.”
Bank of America raised 2023/24/25 sales volume estimates by 0.4%/1.6%/16% for ET5, ES6 and NIO’s mass-market brand Alps, respectively.
Shares of NIO are down 4.78% in pre-market trading on Wednesday.