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Is NIO Stock a Buy Ahead of NIO Day 2021? Analyst Weighs In

TipRanks
·2 min read

2021 has kicked off in earnest and most would like to forget 2020 as quickly as possible. However, Nio (NIO) investors might disagree, and it’s fair to say most would like a repeat of last year’s market performance.

In 2020, a year bearing no semblance to normality, Nio shares skyrocketed by an abnormal 1,112%, as investors thirst for EV stocks seemed to know no bounds.

Will 2021 bring more of the same? Who knows, although Deutsche Bank analyst Edison Yu already counts one upcoming event to get the wheels turning.

On Saturday, January 9, Nio will host its fourth annual “NIO Day” in Chengdu, where the company will introduce its first sedan model.

Yu expects the new sedan will be aimed at “the mid-size premium segment” and will be the first Nio vehicle to be built on the EV maker’s next generation NP2 platform.

According to reports, the new model will be called the EEV and although no official specs have been provided yet, Yu anticipates a “euro centric styling with a sporty front grill, long wheelbase (+3.000m), fast acceleration (0-100km in 400 miles, helped by use of silicon carbide), and a refresh of interior/cockpit.” Production is slated to begin in 4Q21 or early 2022.

Alongside the EE7’s unveiling, at the event Nio will also reveal its new autonomous driving platform. Named NT2.0, the platform will boast LiDAR sensors and feature Nio’s internally developed vision software. Yu says its introduction confirms his “earlier belief the company was looking to pivot away from Mobileye.”

The company says the platform will enable Level 4 autonomy in 2022 and will also come with 5G+V2X connectivity.

Finally, NIO will also present its new battery swapping tech which is expected to be “faster and cheaper than current stations,” and introduce a bigger 150 kWh battery pack which will eventually be available for all existing models.

Overall, while Yu rates NIO a Buy, the recent strong rally has pushed the stock price slightly above his $50 price target. (To watch Yu’s track record, click here)

The rest of Wall Street has similar expectations; the $50.20 average price target is nearly identical to Yu’s. All in all, the analyst consensus rates the stock a Moderate Buy, based on 8 Buys and 4 Holds. (See Nio stock analysis on TipRanks)

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Disclaimer: The opinions expressed in this article are solely those of the featured analyst. The content is intended to be used for informational purposes only. It is very important to do your own analysis before making any investment.