Nio Price Target Trimmed as Analyst Stays Bullish on The Stock

Nio's stock (NYSE:NIO) closed the previous week with a notable 7.23% gain, pushing the stock back above the $5 threshold following a solid profit alert from the Chinese electric vehicle manufacturer. 

Despite the recent price strength, JPMorgan analyst Nick Lai trimmed the firm's price target on NIO to $7 from $8 while maintaining an Overweight rating on the shares.

The revision reflects growing concerns about the broader Chinese automotive landscape, with JPMorgan forecasting the country's auto industry will underperform in 2026 as underlying passenger vehicle growth slips into negative territory. The firm has cut its earnings forecast for NIO's domestic peer Li Auto to a loss this year, citing falling sales volumes and deteriorating margins across the sector.

Not all analyst commentary has been negative. Morgan Stanley reiterated an Overweight rating with a $9 price target in November 2025 following third-quarter results that showed a narrowing net loss of RMB 3.7 billion, down from RMB 5.1 billion in the previous quarter.

The improvement was primarily driven by better gross profit margins, though the firm acknowledged that the last twelve months' margin of 10.28% remains weak by industry standards.

The divergence in analyst views underscores the complex investment case surrounding NIO.

While JPMorgan's Overweight rating suggests confidence in the company's long-term prospects despite near-term headwinds, the reduced price target acknowledges the challenging operating environment facing Chinese automakers.

Markets appear to be weighing the recent profit alert and delivery momentum against persistent margin pressures and cash consumption, with the stock's ability to hold above $5 serving as a key technical and psychological level for sentiment in the sessions ahead.