Morgan Stanley says “buy” nio stock after the launch of new SUVs

Chinese automaker Nio Inc. (NIO) increased by more than 6% on Thursday, stimulated by the excitation of investors around its newly unveiled SUV L90. The stock is still down approximately 15% for the start of the year, in the midst of current delivery problems and the increase in competition from electric vehicles in China. While the company continues to grow income, it remains unprofitable: to answer questions on its long -term path towards stability. However, in a new update, Morgan Stanley’s analyst Tim Hsiao reiterated his share rating on action with a price target of $ 5.90, after the launch of the latest NIO electric SUV, Onvo L90, under his new submarque, Onvo.

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The company opened its sales for the Onvo L90 at 279,900 RMB, or 193,900 RMB with the battery plan as a service (BAAS). According to HSIAO, official prices could be lower than market expectations from 270,000 to 280,000 RMB, which could help the model gain ground in overcrowded space. Deliveries should start on August 1.

HSIAO views on the onvo l90 launch

HSIAO thinks that the L90 offers a convincing mixture of features for a vehicle in its SUV segment. The three-row SUV offers high-end features such as 900 V fast load, AR-Hud display, air suspension, an intelligent refrigerator and L2 + autonomous driving supplied by the NVIDIA (NVDA) Orin-X chip (NVDA). He noted that the L90 compares well to premium models like Li Auto (LI) L9, Aito M9 and Denza (byd sub-brand), while arriving at a more competitive price.

At the same time, HSIAO stressed that the price of the L90 positions it directly against SUVs with more affordable six places such as Li Auto L6, XPEG (Xpev) G9 and Xiaomi SU7, which could help it use a larger range of buyers.

However, the analyst has also raised certain concerns. Although the features and the price are solid, Hsiao has declared that one is still not well known and that the brand has not yet proven that it could deliver well. He added that gaining customer confidence and showing solid results will be important if Nio wanted the L90 – and the next L80 – to do well.

However, Hsiao is full of hope. He thinks that Onvo models could help Nio get back on the right track, as long as the company can perform well on a market where buyers pay attention to price and value.

Is NIO a purchase, a sale or an outfit?

Overall, Wall Street has a consensus note on NIO shares based on two purchases, seven holders and a sold awarded in the last three months. The average objective of the NIO share price of $ 4.40 implies an increase in increase of 19.24% of current levels.

See more Nio analyst notes