Citi Raises Target Price and Maintains Buy Rating for NIO

Summary

Citigroup has raised NIO’s target price to HKD 65.9 and maintained a ‘buy’ rating. They forecast sales of 500,000 units in 2026 and 571,000 units in 2027, with gross margins of 16.8% and 18.1%, respectively. However, they have lowered the 2025 sales forecast to 360,000 units and adjusted the net profit forecast to a loss of CNY 15.2 billion in 2025, a profit of CNY 800 million in 2026, and a profit of CNY 5.6 billion in 2027. NIO has been added to the 30-day upward catalyst watch list.AASTOCKS

Impact Analysis

So basically, Citigroup’s upgrade of NIO’s target price to HKD 65.9 and maintaining a ‘buy’ rating is a strong vote of confidence in NIO’s long-term prospects despite some near-term headwinds. The interesting part isn’t just the target price increase, but the detailed forecasts: 500,000 units in 2026 and 571,000 in 2027 with improving gross margins. This suggests that Citigroup sees NIO’s operational efficiencies and market position strengthening significantly over the next few years. However, the lowered 2025 sales forecast and the substantial loss expected this year indicate that there are still short-term challenges, likely related to production scaling and market competition. The market might be underestimating the potential for a turnaround in 2026 and beyond, especially with NIO being added to the 30-day upward catalyst watch list. This could be a good entry point for long-term investors who believe in NIO’s growth story.AASTOCKS