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Research Alert: CFRA Maintains Hold Opinion On Adss Of Nio Inc.
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Research Alert: CFRA Maintains Hold Opinion On Adss Of Nio Inc.
Jun 24, 2025 11:18 PM

01:45 AM EDT, 06/25/2025 (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:

Our target price of US$3.80 (from US$4) applies a 0.7x 2025 P/R multiple. We keep our 2025 loss per ADS forecast of CNY8.33, reflecting Q1's higher-than-expected net loss of CNY6.75B and persistent cost headwinds, including elevated SG&A and R&D investments, which are only partially offset by management's nascent cost-control initiatives. This outlook incorporates the anticipated sequential improvement in Q2 (guided deliveries of 72K-75K units) but remains cautious given ongoing margin volatility (gross margin fell 410 bps Q/Q to 7.6%) and the lagged impact of operational optimizations. For 2026, we forecast a narrower loss per ADS of CNY6.87, acknowledging gradual progress from scale benefits (2025's new model ramp-up), vertical integration (in-house chips, battery tech), and structural cost reductions, while still accounting for balance-sheet fragility (current liabilities of CNY59.5B exceeding current assets of CNY49.8B) and the need for sustained capital discipline to extend the cash runway beyond 2025.

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