Nio (NYSE: NIO) stock has had a tough year, having dropped nearly 35% on the year-to-date chart (YTD) as of October 20. Nonetheless, analysts remain optimistic.
The shares closed at $3.39 in the latest trading session, down 1.17% from the previous close and underperforming the broader market, as the S&P 500 gained 0.41%.
Continued pressure picked up the pace most drastically over the past month, with shares declining 6.28% and leaving investors puzzled ahead of the upcoming earnings report scheduled for late November.
That said, though, Wall Street still forecasts 70% upside for the Chinese electric vehicle (EV) manufacturer, judging by their average 12-month Nio stock price target of $5.84, per TipRanks calculations.
NIO earnings forecast looks positive, analysts say
The latest analyst call on Nio came from Bernstein on October 12, when the company recommended holding the stock despite the recent performance. Prior to that, on September 15, Morgan Stanley actually raised its Nio share price target from $7.4 to $8.8 while maintaining an Overweight rating.
Looking ahead, analysts expect NIO to report earnings per share of -$0.03 for the upcoming quarter, representing an improvement of 85.71% compared with the same period last year. Revenue is also forecast to reach $4.97 billion, an increase of 62.42% year over year, according to the latest consensus estimates.
For the full fiscal year, estimates point to a loss of $0.13 per share and revenue of $19.1 billion, which represents projected improvements of 86.73% in earnings per share (EPS) and 54.89% in revenue compared with the previous year.
Nio stock is still under pressure
While none of the projections suggest that the carmaker is on the way toward new records or even toward its previous highs, the upcoming financial results could nonetheless be an important catalyst for the stock.
For now, the Wall Street consensus remains “Moderate Buy,” and even the lowest of the Nio share price forceasts, which went as low as $4 over the previous three months, stand above the current price levels.
Still, despite expectations for strong year-over-year (YOY) revenue growth, NIO shares remain under pressure, having declined more than 6% over the past month. Investors will thus be watching vehicle delivery figures carefully, weighing demand trends and competitive pricing in the Chinese electric vehicle market and management’s outlook for the coming quarters.
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