Down 52% Year-to-Date: What’s Next for Nio Penny Stock?

Nio (NYSE:NIO) the company’s stock is down about 52% year to date. Shares of this Chinese electric vehicle manufacturer are currently trading in the penny stock territory (find out more about penny stocks here). The competitive environment and pricing issues impacted the stock price. Despite this significant decline, Nio stock may still be under pressure in 2024.

However, Nio management remains optimistic and anticipates further improvements in vehicle margins. They expect margins to return to double-digits by Q2, with further improvement in Q3 and Q4. Nevertheless, Nio believes that the growing competition in the EV space will continue to pose a challenge.

Investor sentiment remains negative

Retail investors are very negative about the company, with the number of portfolios (tracked by TipRanks) holding the stock down 3.8% over the past 30 days. This suggests that these investors are reducing their exposure to Nio amid the adverse macro environment.

Overall, of the 742,848 portfolios tracked by TipRanks, 3.9% have invested in Nio stock.

Learn more about TipRanks’ powerful investor sentiment tool here.

Is it worth buying or selling NIO today?

Citi analyst Jeff Chung has a bullish view of NIO stock. However, Chug lowered his price target to $8.50 from $10.40 on June 6. The analyst expects Nio to benefit from increased sales momentum and new model launches.

On the other hand, Barclays analyst Jiong Shao has a negative view on Nio stock. He set a price target of $4, which suggests the stock could decline further. Shao points to higher expenses and lower sales prices as the main reasons for his pessimistic attitude.

Overall, Wall Street analysts are cautiously optimistic about Nio stock. Nio stock has five Buy ratings, six Hold ratings and one Sell rating, giving it a Moderate Buy consensus rating. The analysts’ price target for NIO stock is $6.19, which implies a 41% upside potential from current levels.

Summary

Nio stock is facing headwinds that could hurt its financial results and share price in the near term. While analysts have mixed opinions on Nio stock, investors can use TipRanks’ penny stock screener to find the top-rated penny stocks.

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