NIO (NIO) PT Raised to $75 at JPMorgan Noting 4 Strategic Initiatives from Analyst Day

JPMorgan analyst Nick Lai raised the price target on NIO (NYSE: NIO) to $75.00 (from $50.00) after the company revealed four strategic milestones at Nio Day on 1/9:

1) In-house autonomous driving (AD) solution based on Nvidia architecture

2) Solid-state battery for the next new model, ET7 sedan, from 4Q22 with 150kwh
capacity or >1,000km range

3) Beginning of content monetization such as Autonomous Driving as a service where users pay a monthly fee

4) Commercialization of LiDar to deliver super-sensing capability on ET7

The analyst maintained an Overweight rating, stating "Our sensitivity analysis suggests this business {Content Monetization} could bring about US$21-35/shr present value to Nio's valuation (bear case ~US$21, base case ~US$25, bull case ~US$35). We incorporate the base case scenario into our existing fair value estimate (US$50 based on 5.0x EV to 2025 sales, a discount to Tesla’s 8.3x, which we think is reasonable considering NIO’s position as a pioneer among Chinese EV peers, driving business model transformation, and its unique position in the premium EV space among Chinese brands) for a new SOTP-based PT of US$75."

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