NIO Inc ADR
NIO: XNYS (USA)
Morningstar Rating for Stocks | Fair Value | Economic Moat | Capital Allocation |
---|---|---|---|
$8.10 | Nfj | Gvspgsfq |
Leading NEV Maker Targeting Premium Brand Auto Segment; Initiating on Nio With USD 27 FVE
We initiate coverage on Nio with a no-moat rating and fair value estimate of USD 27 per ADS (HKD 212 per share). As a leading electric vehicle, or EV, manufacturer in China targeting the premium segment, Nio will benefit from vehicle electrification and consumption upgrade trends. Given significant growth opportunities, we forecast a 56.6% 2021-24 revenue CAGR, with the first profitable year in 2025. Our fair value implies a forward 2023 price/sales ratio of 3.0 times.