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Investing.com - Goldman Sachs has raised its price target on Nio (NYSE:NIO) to $7.00 from $4.30 while maintaining a Neutral rating, citing improved model competitiveness from recent launches. The new target sits just below Nio’s current trading price of $7.14, though InvestingPro data suggests the stock may be undervalued based on its proprietary Fair Value model.
The firm increased its 2026-2030 sales volume estimates for Nio by 6%-11%, noting that the company’s recent launches of the L90 and ES8 models have led to continuously improving sales over the past quarter. This positive momentum is reflected in Nio’s impressive 76.3% price return over the past six months and 63.8% year-to-date gain.
Goldman Sachs highlighted Nio’s expanded model pipeline into 2026, which includes two new launches (L80 and ES9) and a facelift for the ES7, expected to contribute further to the current positive sales momentum.
The higher projected sales volumes and scale economics led Goldman Sachs to raise its gross margin estimates by 2%-3%, resulting in improved non-GAAP EPS forecasts for 2026-2030 from Rmb-5.14-Rmb2.28 to Rmb-2.05-Rmb3.32.
The firm now expects Nio to reach full-year non-GAAP EBIT break-even in 2028, one year earlier than its previous forecast of 2029, with accumulated free cash flow during 2026-2030 strengthening to Rmb22bn from Rmb11bn previously.
In other recent news, NIO Inc . reported a record delivery of 34,749 vehicles in September 2025, marking a 64.1% year-over-year increase. This achievement included deliveries from its premium smart electric vehicle brand, family-oriented ONVO brand, and high-end FIREFLY brand. However, the company is facing significant delivery delays for its newly launched third-generation ES8 SUV, with waiting times of 24 to 26 weeks for new orders. In response to NIO’s recent developments, UBS upgraded its stock rating from Neutral to Buy, citing the appeal of new products and improved financial visibility following a $1 billion equity offering. JPMorgan also reiterated its Overweight rating, maintaining an $8.00 price target, as the company plans to use the proceeds from the equity offering to invest in core vehicle manufacturing technologies and expand its charging network. Additionally, NIO announced a new equity offering of approximately 182 million Class A ordinary shares, with an option for underwriters to purchase an additional 27 million depositary receipts.
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