Morgan Stanley Raises NIO Price Target to $6.50 Amid Restructuring Progress
Morgan Stanley analyst Tim Hsiao has increased Nio's price target to $6.50 from $5.90, maintaining a Buy rating. The adjustment reflects confidence in Nio's restructuring efforts and robust early demand for its Onvo brand, despite near-term challenges.
Delivery forecasts for 2025 were trimmed by 9% to 330,000 units due to soft first-half performance. However, estimates for 2026 and 2027 remain unchanged at 470,000 and 586,000 units, respectively, buoyed by strong interest in the Onvo L90 SUV.
Gross margin projections for 2026 and 2027 were raised by 0.2 percentage points, driven by a shift toward higher-margin models. Operating expense estimates for 2025 were cut by 10%, signaling effective cost-cutting measures, including workforce reductions.
