NIO Inc ADR

NIO: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$1.90	Nbdrl	Ptkbcrvk

Leading NEV Maker Targeting Premium Brand Auto Segment; Initiating on Nio With USD 27 FVE

Vincent Sun

Jul 5, 2022

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.

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