In the years Low interest rates And abundant liquidity In the stock market, from about 2020 to 2023, several names were on the top of the observation list of each investor. It turns out that through each cycle these names ultimately come out of favor when the cycle for Credit and money markets It gets back to be more expensive and less affordable, which throws the same popular names in the list of priorities.
NIO today
- 52-week range
- $ 3.02
▼
$ 7.71
- Value is valuable
- $ 5.05
Despite the fact that these shares can see how their prices for shares will be lower for a while, sometimes their The basics continue to move higher under radar And a wider macroeconomic prospect, which would have had them to much higher prices during the best cycle of the credit and monetary market.
Today’s market creates an example similar to this in the automobile sector, although this one comes from China, another world.
Stock Nio Inc. NYSE: NIO Get a high rating all the time within 2021 to connect points to this cheap money and optimism of liquidity cycle This is distributed for all certain actions with sufficient fundamental causes to send them above. However, after 2021, the supply was cut down in half, and then again several times decreased in half to allow him to sit in the same range over the past 12 months, although this may change in the nearest quarters.
Search for the bottom for NIO shares
Although the NIO shares fell by 24.8% Over the past 12 months, this bear path seems to have ended. There are several factors that investors can take into account to rely on this belief. Starting with an increase in the type of performance, 10.6% rally over the last month It can turn a long -term sale into a short -term bottom.
Moreover, it seems that Short sellers began to understand The fact that the current price of NIO is potentially at a price in the worst scenarios for the company and the Chinese stock market as a whole. Over the past month, when the rally began, the short interest of the company decreased by 6.4%, showing the beginning Bear CapitulationField
Nevertheless, experienced investors are likely to require much more than just a price action, and some short sellers close their positions, since they see that the shares begin over the past month, there should also be a mixture fundamental reasons to support the potential thesis of the purchase This relies on a long -term bear tendency in which NIO was.
Fundamentals back to NIO
Despite the fact that the economy does not look great in China, which perhaps currently experiences a decrease or even a recession cycle, the habit of expenses did not leave electric car scene. The last quarterly report on income from NIO showed that sales of vehicles for The fourth quarter of 2024 grew by 13.2%Field
NIO shares forecast today
$ 5.05
23.32% growthHold
Based on 11 analysts ratings
| The current price | $ 4.10 |
|---|---|
| High forecast | $ 8.10 |
| Average forecast | $ 5.05 |
| Low forecast | $ 3.50 |
Details of NIO shares forecast
Not only did the sales increase, but also Gross profit also increased As a result Saving scale Reached in the company. This allowed NIO to report much higher margin 11.7% compared to 7.5% For the same quarter of last year. This higher margin is also a proxy for the company Price force And the ability, despite the rigid economic environment.
With this in mind, Nio creates a script in which it Future operating income can go according to a similar path that will inevitably show in Profit result And, therefore, Assessment of shares priceThe field is exactly what is meant by quiet foundations, while the prices for shares remain compressed, as they are today.
At a later number, NIO released its delivery numbers for April 2025, which appeared on 23,900 units represent amazing growth rate as much as 53% Every year, again, not what is a synonym for the economy, which is as bad as everyone does it in China.
Markets agree with a higher price
All these factors could play a role in today’s target price of $ 5.05. Pure growth potential as many as 26.2%Field
Ultimately, one of the main reasons why the shares are maintained today is the effect President Trump Trading TradesFirst of all, focusing on Chinese goods. However, it is very important to remember that NIO mainly serves its Chinese domestic market And some Asian and Latin American regions.
Consequently, there is no reason to worry about the impact of tariffs on the economy and the price of NIO shares, only in the sense that a wider concern can damage its feelings and maintain the price of the shares a little longer. However Endrang in NIO remains the sameWith Higher prices are the established normField
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