Sign InSummary
NIO Inc.'s technical and fundamental analysis suggests a hold stance due to bearish technical indicators, negative sentiment, short-term volatility, and potential headwinds, despite being undervalued and having a median target price above the current market price, with the stock expected to experience volatility on June 23, 2023.
Technical Analysis
NIO Inc.'s last close on June 22, 2023, was at $8.92, down 1.65% from the previous day. The stock traded within the range of $8.74 and $9.03 on that day. The year-to-date high and low for the stock are $24.43 and $7 respectively. NIO has a market capitalization of $14.15 billion and was trading with a volume of 24.59 million shares, lower than the average volume of 51.26 million shares.
The Relative Strength Index (RSI14) for NIO is 70, indicating an overbought condition. The stock's 50-day moving average is $8.29, slightly below the current price, while the 200-day moving average is $10.94, indicating a bearish trend. The Moving Average Convergence Divergence (MACD) for the 3-month period is 0.05, suggesting a bullish crossover.
Fundamental Analysis
NIO Inc. has a negative earnings per share (EPS) of $1.55 and a Price to Earnings (PE) ratio of -5.41. The shares outstanding for the company are 1.69 billion. The anticipated date for the next earnings announcement is September 5, 2023. The discounted cash flow (DCF) for the company is $20.53, higher than the current market price. The consensus target for the stock is $35.15, with a target high of $83 and target low of $13; the current price is below the median target of $31.3.
Analysts and investors are closely watching the company due to recent news related to tax breaks and subsidies for electric vehicles (EV) in China, NIO's primary market.
Stock Price Predictions
For the next trading day, June 23, 2023, the stock price is expected to experience volatility in light of the latest news about China extending the tax exemptions for EV purchases. The stock price may see increased buying pressure following the recent catalysts and may move higher in the day, potentially breaching the $9 mark.
For the upcoming week, considering the technical and fundamental indicators, as well as recent news events, we expect the stock to move higher and test the $9.50 to $10 levels. However, potential headwinds from negative sentiment around the company's management and growth prospects might limit the stock's upward performance.
Final Evaluation: Hold
Considering the current market price, the discounted cash flow value, and the median target price, the stock seems undervalued. However, NIO's bearish technical indicators, negative sentiment regarding the company's management and growth, as well as short-term volatility in the sector, prompt a cautious approach. We recommend a "Hold" stance for NIO, as there may be a better entry point for long-term investors.
