Citi maintains NIO stock Buy rating with $8.10 target

On Monday, Citi reaffirmed its Buy rating on NIO Inc . (NYSE:NIO) shares, maintaining a price target of $8.10. Currently trading at $4.03, InvestingPro analysis indicates the stock is undervalued relative to its Fair Value, despite the company’s $9.04 billion market capitalization. The firm’s analyst, following the Shanghai auto show, anticipates that NIO will introduce new models sooner than the market expects. These new vehicles are projected to benefit from reduced Bill of Materials (BOM) costs and cost-saving synergies.

The analyst noted a recent uptick in orders and has initiated a 30-day positive catalyst watch on NIO stock. This optimistic outlook is based on three key factors: the launch of new models, the introduction of new Advanced Driver-Assistance Systems (ADAS) and chips, and enhanced cost savings.

Citi’s analysis suggests that NIO could potentially achieve deliveries of 63,000 units in the second quarter, marking a 50% quarter-over-quarter increase. This momentum is expected to continue, with projections of 100,000 to 120,000 units in the third quarter and 120,000 to 150,000 units in the fourth quarter.

The analyst’s forecast further suggests a significant re-rating of NIO’s fiscal year 2026 volume to 600,000 units, up from the current forecast of 456,000 units. This revision reflects the analyst’s confidence in NIO’s growth trajectory and operational efficiencies. The positive outlook from Citi comes as NIO continues to expand its product lineup and enhance its technological capabilities in the competitive electric vehicle market.

In other recent news, NIO Inc. reported a notable 14% increase in vehicle deliveries for March, totaling 15,039 vehicles, a significant rise from the previous month. This growth also reflects a year-over-year increase of 26.7%, indicating a steady demand for NIO’s electric vehicles. Meanwhile, the Chinese battery giant CATL is reportedly in negotiations to acquire a controlling stake in Nio’s power unit, which operates over 3,000 battery swapping stations in China. The details of this potential deal remain undisclosed, but it follows a previous investment by CATL in Nio Power.

Additionally, NIO has initiated a new round of layoffs in its European operations, focusing on design and R&D departments, as part of a global effort to reduce operational costs by 25%. Macquarie has maintained its Neutral rating on NIO, with a price target of $4.70, highlighting concerns about the company’s financial situation, including a decline in cash reserves and the potential need for additional capital raising. The analyst firm noted that despite a recent cash injection, NIO might face ongoing challenges with negative free cash flow in the fiscal year 2025. These developments come amid broader market shifts, including escalating trade tensions between the U.S. and China, which have impacted Chinese stocks listed in the U.S. market.

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