NIO STOCK FORECAST

PUBLISHED Jun 15, 2022, 7:36:49 PM        SHARE

imgMuhammad Shoaib

NIO is a multinational automobile manufacturing company. It is a Chinese company. Its headquarter is in Shanghai China. It is specialized in designing, developing, and manufacturing electric vehicles. It is very famous for its designation of battery-swapping stations. Battery swapping stations are alternatives to conventional charging stations for vehicles. It serves its products to Germany, the United States, the United Kingdom, Norway, and its own country China. It generates ¥ 15 billion per year. Its total assets are ¥46billion and its equity is ¥27billion. There are 7000+ employees currently working. Its average share price is $16. Its average volume of shares is a 76million. Currently, it is in a bearish trend.

NIO is a new and fast-growing company in China. It is looking to earn a handsome profit. The earnings per share of the stocks of NIO are good. Its EPS is about $0.74. However, NIO is earning low EPS ratings. It is earning EPS ratings of 33 out of 100. But it is not too bad as compared to other companies. In the first quarter of 2022 NIO delivered a 15-cent loss. However, it was better than the 50-cent loss in the fourth quarter of 2021. Revenue increased by 24%. It sold 25 thousand electric vehicles in the first quarter, which was 25% more than the previous year.

In 2020 the volatility of the supply chain of NIO became high. And NIO also faced the challenges of delivery of vehicles during the COVID-19 pandemic. As the COVID-19 pandemic affected the whole world, NIO couldn't supply its electric vehicle to other countries sufficiently due to transport restrictions. This pandemic remained throughout the year. That's why its share price also caught a bearish trend. So, for the short term, its shares are being sold more. Additionally, due to the pandemic, the liquidity of the company has also been reduced. It had $8.7 billion but it got down slightly to $8.3 billion. Therefore, if we go through technical analysis, fundamental analysis of the company, and current economic situation. Then, it suggests that traders should not buy shares of NIO stock now.

The forecast of NIO's annual earnings is not predicted to beat the Auto Manufacturers industries of the United States. The average forecast earnings growth rate of Auto Manufacturer industries is 18.16%. However, the forecast growth rate of NIO's total earnings is 15%. The total earnings of NIO in 2022 is -$1,124million. According to 2 Wall Street analysts the forecast of NIO's earnings for 2022 to be -$1,167 million.

NIO stock price forecast for 2022

2022 has started with a great reset for electric vehicles. Most of them, including Tesla, have seen their share prices slump by double-digits.

According to analysts, it cannot be said exactly whether the stock price would go down or up. They have mixed feelings about the price. Data history shows that the approximate target for the stock is $50 which is significantly higher than the current price of $16. In the opinion of some analysts, the stock price chart will be bearish on the stock market soon. On the other hand, most analysts show that it will be bullish on the stock. In addition to this, data made by Tip ranks shows that the prediction of the stock is $60. If the share price touches sixty dollars then this will make dollar pockets of so many investors. Because the current price of NIO Share is too low. Meanwhile, Long Forecast shows that the NIO stock price shall have positive growth in the next five months. Long Forecast expects that the shares will be below $50 at the end of 2022. However, it is very difficult to forecast that the stock will perform better in about five years. According to history, the situation will be more volatile for NIO. because NIO is a Chinese company and most of its shares are in the US and UK Stock Markets. So, the company could probably be removed from the list in the United States.

Keeping all other factors constant, there is more chance that the NIO share price shall be increased because electric vehicles are going mainstream. As we already know, several countries like those in European countries and even in China. People and the government are planning to discontinue the combustion engine.

Lastly, NIO is one of the best companies in the world. Its revenue growth is very high. However, its share price is very low currently. It is also risky. Since it is a Chinese company, there are many concerns about the financial result's accuracy. Moreover, it is expected that the company could be delisted from the US. If this situation occurs many Americans will withdraw their stocks. So in the long run the company can suffer. So AIO is a buy stock after a few months and in the long run keeping eye on the market and global economic situation.

NIO, Buy

NIO Inc
Return: -74.84%

NIO, Buy

Return: -74.84%


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