NIO stock rating downgraded to Hold by Freedom Broker despite price target increase

Published 04/09/2025, 13:22
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Investing.com - Freedom Broker has downgraded NIO (NYSE:NIO) from Buy to Hold while raising its price target from $4.90 to $6.50, according to a research note released Thursday. The stock, currently trading at $6.32, has shown remarkable momentum with a nearly 50% gain over the past six months, according to InvestingPro data.

The Chinese electric vehicle manufacturer reported mixed results for the second quarter of 2025, showing strong growth in EV deliveries, partly attributed to initial contributions from its new FIREFLY sub-brand.

Despite delivery growth, NIO experienced a decrease in average selling price, which Freedom Broker analyst Dmitriy Pozdnyakov attributed to the renewal of the company’s model lineup.

The downgrade comes as NIO’s guidance for the third quarter fell "notably short of consensus estimates," according to the research note.

The analyst’s revised price target of $6.50 represents an increase from the previous target of $4.90, despite the more cautious Hold rating that replaced the previous Buy recommendation.

In other recent news, Nio reported second-quarter revenue of RMB 19.0 billion, marking a 9% increase year-over-year and a 58% rise quarter-over-quarter. Vehicle deliveries for the quarter reached 72,000 units, up 26% from the previous year. Bernstein analyst Eunice Lee raised Nio’s price target to $5.50, acknowledging effective cost controls despite margin pressures. Meanwhile, BofA Securities adjusted its price target to $7.10, noting a better-than-expected non-GAAP net loss of RMB 4.1 billion. Mizuho also increased its target to $6.00, citing positive expectations for delivery growth despite challenges. US Tiger Securities raised its price target to $8.00, highlighting a solid outlook for the latter half of 2025. Nio disclosed 31,305 vehicle deliveries for August 2025 in a recent SEC filing. These developments reflect a variety of perspectives on Nio’s performance and future potential.

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