Nio: Breaking Down J P. Morgans Bullish Call

The Global X U.S. Infrastructure Development ETF (PAVE) edged down 0.4%. The Energy Select SPDR ETF (XLE) sold off 5.2% and the Health Care Select Sector SPDR Fund (XLV) rebounded 1% higher, with LLY stock a notable member. The Industrial Select Sector SPDR Fund (XLI) slipped 0.6%. Reflecting more-speculative story stocks, ARK Innovation ETF (ARKK) fell 1.2% last week and ARK Genomics ETF (ARKG) tumbled 5.7%. Tesla stock remains the No. 1 holding across Ark Invest’s ETFs.

Along with reporting increasing vehicle deliveries, NIO has also improved its operating performance. It took several measures including headcount reduction to lower its costs. Wells Fargo & Co. said third-quarter profit rose to $5.77 billion, or $1.48 a share, from $3.59 billion, or 86 cents a share a year ago. Earnings, adjusted for pretax gains, were $1.39 per share, above analyst estimates of $1.25 per share, according to Zacks Investment Research. Remember that overnight action in Dow futures and elsewhere doesn’t necessarily translate into actual trading in the next regular stock market session. Analysts like NIO less than other Auto/Tires/Trucks companies.

If the market continues to act well, keep shifting out of cash, but do so gradually. Defense stocks rose solidly amid the Israel-Hamas fighting, including Lockheed Martin (LMT), Northrop Grumman (NOC), RTX (RTX), and General Dynamics (GD). That could disrupt possible normalization of relations between Israel and Saudi Arabia. Also, Saudi Arabia reportedly had told U.S. multiprocessing vs threading in python officials that it could boost oil production next year, as a possible goodwill gesture to get Congress to OK a U.S.-Saudi defense pact as part of Saudi recognition of Israel. Israeli Prime Minister Benjamin Netanyahu declared war on Hamas. Israel is striking Gaza hard and has ordered a “complete siege.” Sweeping retaliation is expected in the coming days and weeks.

Since institutional have access to huge amounts of capital, their market moves tend to receive a lot of scrutiny by retail or individual investors. As a result, a sizeable amount of institutional money invested in a firm is generally viewed as a positive attribute. The company is scheduled to release its next quarterly earnings announcement on Thursday, November 9th 2023. NIO’s stock was trading at $9.75 at the beginning of 2023.

Eli Lilly was Friday’s IBD Stock Of The Day, with CrowdStrike, Arista Networks and PANW stock also selections during the week. To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool how to choose stocks for intraday trading that unites all of TipRanks’ equity insights. Beyond the military conflicts, Dimon cited the burgeoning national debt and “the largest peacetime fiscal deficits ever” that he said are raising the risks that inflation and interest rates remain high.

Oil prices and defense stocks gained

True, even Lai doesn’t expect any of this to translate into actual net (or even operating) profits before 2023 at the earliest. But he seems to think that profits will come, eventually. Lockheed Martin shares rose nearly 9% and Northrop Grumman shares rose more than 11%. Choosing JPM GL also meant 24/7 cross-market operational efficiency.

  • He’s often seen as the banker that Washington and global leaders can turn to for advice, solicited or unsolicited.
  • Wells Fargo & Co. said third-quarter profit rose to $5.77 billion, or $1.48 a share, from $3.59 billion, or 86 cents a share a year ago.
  • Total revenues in the July-September quarter were $39.87 billion, up from $32.7 billion a year ago.
  • JPMorgan shares rose 3.6% in late-morning trading on Wall Street.
  • The company announced the opening of its 1,000th swapping station in China in the summer of 2022 and was on track at the time to begin expanding outside of China.

Early Monday, Tesla reported third-quarter deliveries that fell much more than expected. Monday night, Tesla launched a new, lower-priced Model Y that’s $3,750 cheaper than the prior base variant. Late Thursday, Tesla cut Model 3 and Model Y prices in the U.S., along with Model Y cuts in Norway.

Nevertheless, in NIO’s target premium segment, we expect relatively limited competition and forecast the company to double its sales to 90k units vs. 44k last year. For the demand and supply equation in the NEV market, we believe it is now a consensus view that demand will be very robust and we agree that competition will intensify in 2H21 after numerous new models arrive. Chinese authorities have announced a series of pledges over the last week aimed at optimizing its business and investing environment ahead of the Politburo meeting later this week. Investing in financial markets carries risk, you have the potential to lose your total investment. Looking at NIO, it now trades at an NTM price to sales multiple of 12.5x that is even higher than Tesla.

US Stocks Fall for Three Consecutive Weeks as Fears Rise

What kinds of production rates should investors be looking for, then? Assume 20,000 units produced in Q1, and 22,500 in Q2 — that leaves 48,000 cars that NIO will need to build and ship in the second half of the year in order to hit its year-long production goal. That works out to 8,000 cars per month in Qs 3 and 4, and if NIO can do 7,500 cars a month with supply chain problems, it seems reasonable to assume it can do 8,000 a month without them. After the recent rise, NIO’s year to date returns now exceed that of Tesla’s that is up 451% for the year.

However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. The NCAA started allowing college athletes to make money from their name, image and likeness in 2021, and several students are already making millionaires. Upgrade to MarketBeat All Access to add more stocks to your watchlist. 29 employees have rated NIO Chief Executive Officer William Li on William Li has an approval rating of 89% among the company’s employees.

Ready cash and secure reserves remain mission critical to NIO. To achieve these at the same time as new AMP rules were about to go into effect required proactivity. By using the combination, NIO maximised its cash investment return opportunities.

Sales & Book Value

Shares rallied from the 21-day and 10-week lines while also clearing short-term levels, offering an early entry. VRT stock, one of 2023’s big winners, now has a new flat base with a 40.41 buy point. Along with those 10 stocks, Tesla (TSLA) rebounded from key support Friday and rose a review of “quantitative trading” for the week despite a flurry of bad news. And yes, there’s a lot of corporate babble-speak in that statement, but roughly translated, what Lai is saying here is that he thinks NIO has the ability to not just sell cars to consumers, and collect money from making those sales.

An OEM books all the revenue when it sells the cars to customers while the AFC (whose underlying asset or collateral is the car) recognizes monthly mortgage fees paid by customers. Mohit Oberoi is a freelance finance writer based in India. He has over 15 years of experience in financial markets. He has been writing extensively on global markets for the last eight years and has written over 7,500 articles. He mainly covers metals, electric vehicles, asset managers, and other macroeconomic news.

NIO Statement

Based on an average daily trading volume, of 58,370,000 shares, the short-interest ratio is presently 2.3 days. Yet another way that Nio sets itself apart from the average EV manufacturer is that it is focused on high-performance and smart vehicles. Smart vehicles are a stepping stone on the path to autonomous driving and provide a host of advantages to drivers that include improved maintenance and uptime. Nio House locations are artistic attractions in major metropolitan areas that feature social areas, private spaces, libraries, and cafes.

NIO stock bounces back again, and J.P. Morgan suggests it may be ‘bottoming out’

There are currently 7 hold ratings and 3 buy ratings for the stock. The consensus among Wall Street equities research analysts is that investors should “hold” NIO shares. A hold rating indicates that analysts believe investors should maintain any existing positions they have in NIO, but not buy additional shares or sell existing shares. The stock market rally attempt showed bullish action to close out the week, with the major indexes staging an upside reversal Friday and a large number of leading stocks flashing buy signals. The stock market struggled for much of the week, with the Dow Jones and S&P 500 undercutting recent lows, ending their rally attempts. On Friday, the major indexes staged a bullish upside reversal in higher volume, with leading stocks powering higher.

Stock Ratings Reports and Tools

The consensus rating score for NIO is 2.30 while the average consensus rating score for auto/tires/trucks companies is 2.49. Enter your email address below to receive the latest headlines and analysts’ recommendations for your stocks with our free daily email newsletter. Additionally, Lai argues that NIO is more than just a car company selling cars “direct” to customers. It’s also a “pioneer among Chinese EV peers leading a business model transformation from a conventional carmaker to a combination of smart mobility provider with business monetization opportunity.” U.S. stock indexes closed higher Monday after the breakout of the Israel-Hamas war shook global markets.

After seeing how fast production ramped in Q4, and NIO’s projections for Q1, the analyst feels confident in predicting that deliveries will more than double this year, to 90,500 units or better. NIO has gained nearly 40% over the last three months, but the stock remains more than 40% lower over the last year. Nio shares have seen increased attention from retail investors lately.