Nio Shares Hit Four-Month High on Profit Breakthrough and Fresh Upgrades

Investor confidence has firmed on a first-ever quarterly profit with guidance topping Wall Street expectations.

Overview

U.S.-listed shares jumped nearly 7% Monday to an intraday high of $6.21, extending gains of more than 20% since last week’s results.
HSBC upgraded the stock to Buy with a $6.80 target and Nomura moved to Buy at $6.60, while BofA raised its target to $6.70 but kept a Neutral rating.
Nio posted net profit of 282.7 million yuan on revenue of 34.65 billion yuan in Q4, with vehicle deliveries up 72% to 124,807 and vehicle margin at 18.1%.
For Q1, the company guided 80,000–83,000 deliveries (90%–97% year over year) and revenue of 24.48–25.18 billion yuan, both above consensus.
The board approved about 249 million RSUs for CEO William Li tied to 40%–50% annual sales growth over three to five years, and Nio reports over $5 billion in liquidity with more than 3,700 battery-swap stations.