Goldman refreshes its gold stocks outlook for 2025
Investing.com - BofA Securities raised its price target on NIO (NYSE:NIO) to $7.10 from $5.00 on Wednesday, while maintaining a Neutral rating on the Chinese electric vehicle maker. Currently trading at $6.58, NIO appears slightly undervalued according to InvestingPro’s Fair Value analysis, with the stock showing impressive momentum through a 55.56% gain over the past six months.
The revised target follows NIO’s second-quarter 2025 non-GAAP net loss of RMB4.1 billion, which BofA noted was better than its expectations. With a market capitalization of $14.76 billion and revenue growth of 9.28%, NIO faces challenges with its gross profit margin of 10.35%. Management has guided for vehicle deliveries of 87,000-91,000 units in the third quarter of 2025, representing 41%-47% year-over-year growth, and 150,000 units in the fourth quarter. InvestingPro subscribers can access 10+ additional key metrics and insights about NIO’s financial health.
BofA views the recently launched ONVO L90 and NIO ES8 models as competitive in terms of space and performance-to-cost ratio, signaling the start of a strong model cycle for the company. The L90 delivered over 10,000 units in August, while the third-generation ES8 has booked strong orders.
Based on NIO’s latest model pipeline, BofA has increased its volume sales estimates for 2025, 2026, and 2027 by 9%, 19%, and 21% respectively. The firm also raised its gross margin forecasts by 0.5 percentage points for 2025 and 0.7 percentage points for both 2026 and 2027, reflecting expected economies of scale.
Despite the improved outlook, BofA maintained its Neutral rating, stating that the positives from volume growth and narrowing losses are already reflected in the current valuation. The firm now expects NIO’s non-GAAP net losses to narrow by 7% in 2025 and 50% in 2026 compared to previous estimates, with adjusted profit turning positive in 2027. Notably, InvestingPro data shows that 2 analysts have recently revised their earnings upward for the upcoming period, suggesting growing confidence in NIO’s trajectory. Get the complete analysis with InvestingPro’s comprehensive research report, available for 1,400+ top stocks.
In other recent news, NIO Inc . reported second-quarter revenue of RMB 19.0 billion and earnings per share of RMB (1.85), which fell short of consensus estimates of RMB 20.0 billion and RMB (2.20), respectively. The company also announced 31,305 vehicle deliveries for August 2025, marking a 49% increase from July’s 21,017 vehicles. Despite a 17% decrease in deliveries of its premium smart electric SUVs compared to the previous month, the overall delivery numbers indicate a positive trend.
Analysts have taken note of these developments, with Mizuho raising its price target for NIO to $6.00, citing expectations for delivery growth, while maintaining a Neutral rating. US Tiger Securities also increased its price target for NIO to $8.00, maintaining a Buy rating and highlighting a solid outlook for the second half of 2025. Additionally, SunCar Technology Group Inc. has deepened its partnership with NIO, enhancing their cooperation to offer more detailed and customized auto insurance services to NIO vehicle owners.
These developments suggest ongoing adjustments and strategic moves within NIO as the company navigates its growth trajectory.
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