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Investing.com -- Macquarie upgraded Chinese EV maker NIO to Outperform, saying its new Onvo L90 SUV a “potential blockbuster” that could help reverse sluggish sales and re-rate the stock closer to peers.
Priced at RMB 265,800, the six-seat L90 undercuts rivals like Li Auto’s L8 by 17% while offering similar features, and comes in near the price of Tesla’s smaller five-seat Model Y.
Macquarie said the family-focused positioning, emphasizing space and usability over advanced tech could unlock monthly sales of 8,000–12,000 units, making the L90 a “category killer.”
The firm raised its FY25/FY26 delivery forecasts by 7%/10% to 347,000 and 500,000 vehicles, respectively, and lifted its price targets by over 40% to HK$44.00 and $5.50.
Adjusted EPS estimates were also increased by 5% in FY25 and 12% in FY26.
While the L90’s aggressive pricing raises concerns about margin dilution, Macquarie believes NIO has factored this in and could still target low double-digit vehicle margins at scale.
Deliveries are set to begin August 1, which the firm sees as a tactical move to get ahead of a wave of upcoming three-row SUV competitors including the AITO M8 and XPeng (NYSE:XPEV) G01.
Macquarie said the L90 launch shifts the narrative for NIO following the underwhelming rollout of the L60, and could support a re-rating of the stock, which has long traded at a discount to peers on price-to-sales.
Key catalysts include strong L90/L80 deliveries, better-than-expected vehicle margins, and further policy support for plug-in electric vehicles in China.