10:15 AM EDT, 06/06/2024 (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 maintain our target price of USD5.50, 1.3x our 2024 P/revenue (five-year mean: 6x), reflecting our cautious view on vehicle sales and projected longer break-even time. Q1 2024 revenue of CNY9.9 bln (-7% year-over-year, or Y/Y, on -3% vehicles delivered and lower average selling price) was within estimates, and a loss per ADS (LPADS) of -CNY2.57 (up 13% Y/Y) was lower than expected. NIO's guidance of between 54,000 and 56,000 delivery units for Q2 2024 is weaker than expected, as momentum from new launches tapers. Hence, we reduce our 2024 revenue forecast to CNY66 bln from CNY74 bln. We expect NIO to be loss-making in 2024-2025 on higher R&D spend (mainly for battery swapping stations, autonomous driving, and development of mass market cars) and the start-up cost for the business expansion in Europe. We lower our 2024 and 2025 LPADS forecasts to -CNY10.34 from -CNY8.63 and to -CNY7.66 from -CNY4.25, respectively.