10:00 AM EST, 03/06/2024 (MT Newswires) -- CFRA, an independent research provider, has provided MT Newswires with the following research alert. Analysts at CFRA have summarized their opinion as follows:

We lower our target price to USD5.50 from USD7.50, 1.1x our 2024 P/revenue (five-year mean: 6x), reflecting our cautious view on vehicle sales and projected longer break-even time. Q4 2023 revenue of CNY17.1 billion (+6% Y/Y on +25% vehicles delivered and lower average selling prices) was within estimates, and a loss per ADS (LPADS) of CNY2.81 (down 8% Y/Y) was better than expected. NIO's guidance for between 31,000 and 33,000 delivery units for Q1 2024 (+6% Y/Y) is weaker than expected, as momentum from new launches tapers. Hence, we reduce our 2024 revenue forecast to CNY74 billion from CNY88 billion. We expect NIO to be loss-making in 2024-2025 on higher R&D spend (mainly for battery swapping stations, autonomous driving, and the development of mass market cars), as well as start-up costs for the business expansion in Europe. We revise our 2024 LPADS forecast to -CNY8.63 from -CNY6.05 and initiate a 2025 LPADS estimate of -CNY4.25.