Strong growth: Analysts confident: NIOs deliveries should double this year despite the lack of chips | message
Shares in this article
• NIO shines through strong growth
• Battery swap stations can add to business
• Most analysts agree and put NOK on “Buy”
Increase in deliveries
NIO more than quintupled its deliveries in March 2021 compared to the previous year, to around 20,100 vehicles, which is well above the average production growth in the global auto industry. Mizuho analyst Vijay Rakesh told Yahoo! Finance.
Delivery bottlenecks for semiconductors
Despite the industry-wide supply problems for semiconductors needed for the automotive industry, Rakesh believes NIO’s sales will remain strong and will roughly double by the end of the year. He is sticking to this forecast, even if production slows down in the second quarter due to the delivery bottlenecks. The expert predicts deliveries of 87,000 electric vehicles this year, 141,000 in 2022 and 223,000 in 2023.
Further income through battery replacement
In order to maintain this strong growth trend, according to the analyst, NIO’s leading position in battery exchange stations in China also plays a major role, where the empty batteries of an e-vehicle can be recharged – or alternatively exchanged for fully charged batteries within minutes. According to Rakesh, NIO wants to have 500 of these battery exchange stations by the end of the year and in the next few years, in partnership with the state oil and gas giant Sinopec, the number of stations should even increase to 5000. A growing customer base from other automobile manufacturers should help to finance the construction costs of the exchange stations more quickly.
Assessment of the analysts on the NIO share
Rakesh estimates that NIO will have $ 5.2 billion in sales this year and lose $ 0.29 per share, but sales are up 85 percent to $ 9.6 billion in 2022 increase and make his first profit this year. He rates the NIO share as “Buy” and assigns a price target of 60 US dollars. Other analysts have also recently spoken out positively, as a result of which the consensus rating “Moderate Buy” comes to a price target of 62.30 US dollars, which would correspond to an upside potential of around 46 percent (status: closing price on April 26, 2021).
Finanzen.net editorial team
More news about NOK
Image Sources: Sundry Photography / Shutterstock.com, Andy Feng / Shutterstock.com