STOCKS | Goldman Cuts Nio Target Price To HK$48 On Softer Q3 Guidance

Goldman Sachs cut its target price on Nio (09866) to HK$48 from HK$55 and kept a Buy rating after the electric vehicle maker's second-quarter results broadly met expectations but its third-quarter sales and revenue guidance came in below market and the bank's forecasts, according to ETNet. The report said Nio's third-quarter delivery guidance was about 11% to 12% below Goldman Sachs and market consensus at the midpoint, while revenue guidance was 7% to 8% lower. Goldman Sachs cited weak mainland demand and the still-limited market acceptance of the company's Onvo brand. Goldman Sachs expects Nio's sales and operating profit to improve gradually from the third quarter as new models and refreshed products roll out, supporting its premium brand strategy, while the Onvo brand continues to develop and the company keeps generating positive free cash flow. Looking to the second half of 2026, Goldman Sachs expects Nio's sales and revenue to rise 9% and 22% year on year, respectively, with average selling prices up 13%. For full-year 2026, it forecast revenue growth of 44%, non-GAAP operating profit of RMB 1.8 billion versus a loss of RMB 11 billion in 2025, and free cash flow of RMB 7.1 billion.