NIO is likely to stage a comeback with the launch of its new cars, so investors should go for the stock, according to Goldman Sachs. The investment bank upgraded the EV name to buy from neutral. It also hiked its price target on shares to $7 from $6.60, implying 46% upside from Friday's close:
"Among our coverage, we expect Nio to not only deliver one of the fastest volume growth, but also a premium margin profile and strong profit/free cash flow turnaround in 2026E," analyst Tina Hou said in a note to clients:
This is supported by the company's successful turnaround with the launch of new ES8/ES9 model SUVs, together with leading brand power. Shares of Nio have dropped 6% year to date amid a broader slowdown in the EV industry in China:
However, the company's recently launched luxury ES8 and ES9 model EVs have dominated the luxury new energy vehicle market in China, making up 39% of market share, which could boost its stock:
Goldman Sachs expects Nio to see 43% volume growth by the end of 2026 versus a 1% increase in domestic retail volume across its industry:
