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NIO Has Humongous Upside Despite Supply Chain Concerns, High Commodity Costs, Analyst Says

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Mizuho analyst Vijay Rakesh maintained a Buy on NIO Inc (NYSE: NIO) and cut the price target to $34 from $40.

The Tesla Inc (NASDAQ: TSLA) rival reported soft September quarter revenue and EPS and guided to weaker December quarter revenue with deliveries below consensus with ~7k production impact in October.

Also Read: Warren Buffett's Berkshire Hathaway Trim Holdings In This Tesla Competitor Again

Looking out, NIO guided December quarter deliveries below consensus with supply chain constraints, battery costs to remain a headwind into C23E, and model ramps with ET5 and Europe a tailwind.

While the secular electrification trend remains strong and NIO is well-positioned, the stock has seen headwinds with high commodity costs, weaker consumer sentiment, and U.S.-China regulatory concerns.

B of A Securities analyst Ming Hsun Lee maintained a Buy and cut the price target from $16 to $15.

Price Action: NIO shares traded higher by 9.62% at $11.34 on the last check Friday.

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