Nio (NYSE:NIO) stock is a hot topic among traders on Friday as they react to JPMorgan hitting the electric vehicle (EV) company’s shares with a downgrade.
The downgrade for NIO stock has JPMorgan analysts dropping the shares from a “neutral” rating to an “underweight” rating. That is below the analyst consensus rating of hold based on nine opinions.
That downgrade also has the firm cutting its price target for NIO stock from $8.50 per share to $5. That’s a potential 14.5% drop from its prior closing price. It’s also well below the analyst consensus price prediction of $12.25 per share.
Why the Bear Stance on NIO Stock?
Here’s what the firm’s analysts had to say about NIO stock in a note to clients obtained by Investing.com:
“For 2024, our revised revenue forecast (Rmb73bn) is about 10% below Street consensus, as per Bloomberg […] This implies that the Street’s sales volume forecast would be around 220-240K units, higher than our 191K units.”
More names than NIO stock have been downgraded recently as analysts lose interest in EV stocks. That has several companies in the sector seeing price targets and ratings for their shares drop.
NIO stock is down 7.1% as of Friday morning with 31 million shares traded. The company’s daily average trading volume is about 63 million shares.
There are more stock market stories that traders will want to know about below!
We have all of the latest stock market coverage worth diving into on Friday! That includes a double downgrade for Rivian (NASDAQ:RIVN) stock, Intuitive Machines (NASDAQ:LUNR) completing its moon land and what has Carvana (NYSE:CVNA) stock up today. You can find out all about these matters at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
