Goldman Sachs predicts that Nio will focus on sales in the second half of the year, and therefore raise revenue forecasts for 2024 to 2026 by 7% to 13%.
Zhitong Financial APP learned that Goldman Sachs released a research report saying that it gave a 'neutral' rating to NIO-SW (09866) with a target price of HK$32. The company's first-quarter net income was lower than expected, but management indicated that it will have a strong performance in the second quarter, with steady monthly sales targets going forward, and will be more flexible in sales strategies to ensure market position, different from the earlier tendency towards a more resilient price strategy.
The bank expects that Nio will focus on sales in the second half of this year, and therefore raise revenue forecasts for 2024 to 2026 by 7% to 13%. However, the bank also expects that the company's sales and promotion expenses for the whole year will increase by 20% to RMB 15 billion, due to the group expanding the sales group and store network of the Nio and Levdeo (ONVO) brands to further promote sales growth. Therefore, the bank raised its non-GAAP net loss forecast for 2024/25/26 to RMB 15 billion, RMB 15 billion, and RMB 12 billion respectively.