Accordingly, is Nio going up in 2021?
Nio brand also has a lot more buzz, with the company viewed as the most direct rival to Tesla in China. Gross margins stood at 19.5% in Q1 2021, up from a negative 12% a year ago. Sales growth is projected to be the strongest among the three companies, rising by over 150% this year, per consensus estimates.
Furthermore, can Nio stock reach $100? Based on a 25X forward earnings multiple, that implies a 2029 price target for Nio stock of nearly $140. Using a 9% discount rate, that implies a 2021 price target of nearly $70. So, while we think Nio stock is undervalued today and can and will power to $100 over time, we do not think shares will double overnight.
Simply so, is Nio going to go back up?
For 2021, NIO will likely deliver revenue growth of more than 100% on the back of strong deliveries growth, as the analyst community is currently forecasting a 130% revenue increase this year.
Is it still worth buying Nio?
There are metrics which make Nio look like a terrible investment. Its shares' price-sales ratio is higher than all but 3.5% of automotive stocks. Much more important is the fact that Nio delivered another record month of sales in January, as its vehicle deliveries jumped 352% year-over-year to 7,225.
