Nio Inc (NIO), the Chinese electric vehicle manufacturer, is gearing up to report its second-quarter earnings before market hours on Thursday. Wall Street analysts anticipate a negative 31 cents in earnings per share (EPS) and $2.44 billion in revenues. Despite this, Nio has shown impressive growth, with a 35.8% year-over-year increase in vehicle deliveries for 2024, reaching 128,100 units. In August alone, the company delivered 20,176 vehicles, bringing its total deliveries to 577,694 vehicles as of August end. This highlights Nio’s growing impact in the smart electric vehicle market.
However, Nio’s stock has faced a challenging year, dropping by 60.68% over the past year and 49.52% year-to-date. Despite this, the stock shows signs of potential bullish movement. The eight-day and 20-day simple moving averages (SMAs) are both below the current share price, indicating bullish momentum. The 50-day SMA is also slightly below the current price, further suggesting a positive trend. However, the 200-day SMA is above the current price, pointing to a potential long-term downtrend.
While the MACD and Bollinger Bands suggest bearish sentiment, the RSI indicates that Nio stock is currently in neutral territory. Overall, technical indicators lean towards a cautious approach, despite some short-term bullish signals. The consensus analyst rating on Nio stock currently stands at a Buy, with a price target of $14.52. Recent analyst ratings from BofA Securities and Citigroup suggest a 71.23% upside for Nio stock, with an average price target of $7.25.
Investors will be closely watching Nio’s earnings report on Thursday to gain insights into the company’s financial performance and future prospects. The report will likely reveal the impact of the intense price competition in the Chinese electric vehicle market and provide clues about Nio’s ability to navigate the challenging economic landscape. Despite the overall cautious outlook, the bullish momentum observed in recent stock movements indicates that Nio may have some upside potential in the coming months.
