Hey there fellow investors, exciting news for NIO (NYSE:NIO) as they’re set to announce their fourth-quarter numbers on March 1st! Analysts are expecting a net loss per share of $0.26 on revenue of $2.57 billion for the period, which is slightly worse than the year-ago quarter. However, despite the challenging macroeconomic conditions, Wall Street remains optimistic about NIO’s future, with a consensus price target of $17, implying a potential 67% upside. And with NIO’s recent sedan line-up strengthening, there are good reasons to believe that delivery growth could see a robust year in 2023. Sure, there are some potential risks to consider, like the general reopening of China’s economy after the pandemic causing inflation and supply chain problems, but NIO has already demonstrated strong execution in January despite Lunar New Year impacting delivery results. And with their recent announcement of plans to build a battery plant with an annual capacity of 40 GWh, allowing them to compete with Tesla in the cylindrical battery market, this could help lower battery costs and aid NIO’s path to profitability. Speaking of profitability, NIO has yet to turn a profitable quarter, but according to 30 American Auto analysts, they’re bordering on breakeven and expected to achieve positive profits in 2025. With an average annual growth rate of 67%, they’re on track to reach profitability in two years, which is definitely something to keep an eye on. Overall, I’m feeling bullish on NIO and believe their low valuation based on revenue offers limited downside, especially compared to other EV companies. So keep an eye out for their Q4 numbers and let’s see where NIO goes from here!
#nio #niostock #stockmarket
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