Recommendation: Speculative Buy
| Entry Date | Symbol | Recommendation | Entry Price (USD) | Target 1 (USD) | Target 2 (USD) | Holding Duration | Potential Upside |
|---|---|---|---|---|---|---|---|
| 22 Oct, 24 | 0A1K | Speculative Buy | USD 5.19 | USD 5.66 | USD 6.07 | 6 days | 17.0% |
Data Powered by EOD Historical Data (“EODHD”).
NIO Inc. designs, develops, manufactures, and sells smart electric vehicles in China. It offers five and six-seater electric SUVs, as well as smart electric sedans. The company also offers power solutions, including Power Home, a home charging solution; Power Swap, a battery swapping service; Power Charger and Destination Charger; Power Mobile, a mobile charging service through charging vans; Power Map, an application that provides access to a network of public chargers and their real-time information; and One Click for Power valet service. In addition, it provides repair, maintenance, and bodywork services through its NIO service centers and authorized third-party service centers; statutory and third-party liability insurance, and vehicle damage insurance through third-party insurers; repair and routine maintenance; courtesy vehicle services; roadside assistance; data packages; and auto financing and financial leasing services. Further, the company involved in the provision of energy and service packages to its users; design and technology development activities; manufacture of e-powertrains, battery packs, and components; and sales and after sales management activities. Additionally, it offers NIO Certified, a used vehicle inspection, evaluation, acquisition, and sales service. The company was formerly known as NextEV Inc. and changed its name to NIO Inc. in July 2017. NIO Inc. was incorporated in 2014 and is headquartered in Shanghai, China.
Rising Sequential Gross Profits: RMB 1,689 mn in Q2 FY24 vs RMB 488 in Q1 FY24
Increasing Revenue: Net Sales of RMB 17,446 mn in Q2 FY24 vs RMB 8,772 mn in Q2 FY23
Lower Liquidity: Current Ratio of 1.11x in Q2 FY24 vs Industry Median of 1.43x
Balance Sheet Risk: Debt-Equity of 1.31x in Q2 FY24 vs Industry Median of 0.37x
Production Capacity, Battery Supply, Technology Development, Customer Acceptance, Sales Dependency on China, etc.
| Entry Price | Support* | Target 1 | Target 2 |
|---|---|---|---|
| 5.19 | 4.52 | 5.66 | 6.07 |
Data Source: REFINITIV, Analysis: StockNextt
*Support can be considered as an indicative stop-loss, and if prices move below that level on closing basis individuals may evaluate exiting the position depending on their risk appetite, previous holdings, and other factors considered. The support and resistance levels may need to be re-evaluated within 4-6 weeks’ time frame depending on the stock price movements from the date of recommendation on the stock.
NIO Inc's stock price is currently approaching a significant trendline resistance at $5.66, which has acted as a notable supply zone in the past. Unless the price can reclaim its key moving averages and achieve new highs, it is likely to remain in a consolidation phase. The 14-day Relative Strength Index (RSI) is hovering near its midpoint, suggesting a lack of bullish momentum. On the upside, NIO is trading above its 50-day simple moving averages, which provide immediate support at $4.83. However, if the stock drops below this level or falls to $4.52, it may trigger increased selling pressure.
As per the above-mentioned technical indicators analysis, a ‘Speculative Buy’ rating has been given to NIO Inc (NYSE: NIO) at the current market price of USD 5.19 as of 22 October 2024 at 09:01 AM PDT.
Data Powered by EOD Historical Data (“EODHD”).
Sector: Industry:
| Company | Change (GBP) | Price (GBP) | Trailing PE (x) | Forward PE (x) | Price Sales TTM (x) | Price to Book Value (x) |
|---|---|---|---|---|---|---|
| 0A1K Nio Inc Class A ADR |
0.03 0.67% | 4.52 | - | - | - | - |
| 0RIH Alphabet Inc Class A |
- -% | 190.80 | - | - | - | - |
| 0M2Z Equinor ASA |
-0.2121 0.08% | 255.49 | - | - | - | - |
| 0VSO BYD Co. Ltd. |
-2.515 7.06% | 33.09 | - | - | - | - |
| 0QZI Facebook Inc. Cl A |
- -% | 599.00 | - | - | - | - |
Data Powered by EOD Historical Data (“EODHD”).
Related Risks: This report may be looked at from high-risk perspective and recommendations are provided are for a short duration. Recommendations provided in this report are solely based on technical parameters, and the fundamental performance of the stocks has not been considered in the decision-making process. Other factors which could impact the stock prices include market risks, regulatory risks, interest rates risks, currency risks, social and political instability risks etc.
Note 1: Past performance is not a reliable indicator of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is September 23, 2024. The reference data in this report has been partly sourced from REFINITIV.
Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.
Target: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Target 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Target 2 may act as the crucial resistance level for the stock.
Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.
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