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Earnings flood from China's stocks: Is a turnaround on the horizon?
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$NIO Inc (NIO.US)$ NIO Inc.’s Strategic Expansion and Financ...

$NIO Inc (NIO.US)$
NIO Inc.’s Strategic Expansion and Financial Growth Drive ‘Buy’ RatingBlurbs
NIO Inc.’s Strategic Expansion and Financial Growth Drive ‘Buy’ Rating

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NIO Inc. Class A ( – ), the Consumer Cyclical sector company, was revisited by a Wall Street analyst today. Analyst from DBS maintained a Buy rating on the stock and has a HK$65.00 price target.

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Rachel Miu’s rating is based on NIO Inc.’s strong financial growth and strategic expansion plans. The company experienced a 12% year-on-year increase in sales volume for the third quarter of 2024, aligning with its sales target. This growth is expected to continue with projected fiscal year 2024 sales expected to reach 224,000 units, marking a 40% increase year-on-year.
Additionally, NIO’s financial position has been bolstered by a capital injection of RMB 3.3 billion from Chinese investors, enhancing the company’s ability to fund its medium-term development. The company is also expanding its global presence with collaborations in the Middle East and North Africa, which is expected to mitigate export tariff impacts. These factors, combined with the anticipated upswing in sales from its new model, ONVO L60, have prompted the Buy rating, with a raised target price of HKD 65/USD 8.


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NIO Inc. Class A (9866) Company Description:

NIO Inc operates in China’s premium electric vehicle market. The company designs and jointly manufactures, and sells smart and connected premium electric vehicles, driving innovations in next-generation technologies in connectivity, autonomous driving, and artificial intelligence. Its model includes EP9 supercar, ES8, ES6, and EC6 followed by ET7 and ET6 The company sells vehicles through its own sales network, including NIO Houses, NIO Spaces, and their mobile application. The majority of the revenue is earned from selling vehicles.


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