Research
Research Alert: CFRA Maintains Hold Opinion On Adss Of Nio Inc.
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We trim our target price to USD5.50 (from USD7), which implies a 2026 P/S of 0.66x (below its three-year mean of 1x), on our projected slower two-year revenue CAGR of 29% (vs. its historical five-year CAGR of 40% through 2025). We project revenue to grow 33%/25% in 2026/2027, assuming the number of car deliveries will increase by 40%/30% in 2026/2027, led by demand for upcoming new models (including the ONVO L80, ES9, and five-seat ES7). We expect non-GAAP net losses to narrow, supported by an improved product mix and enhanced scale efficiencies. Nevertheless, intensifying price competition and cost inflation are likely to hinder growth outlook and delay profitability improvement, with breakeven unlikely to materialize before 2028. Despite improving margin trajectory in Q1, we see near-term pressure and slower growth (China NEV sales dropped 21% Y/Y in Q1 2026) amid a gradual phase-out of NEV subsidies and softer demand. We maintain our non-GAAP LPADS forecast at CNY0.42 for 2026 and 2027's at CNY0.09.
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