NIO Inc (NYSE: NIO) shares are trading lower Thursday after Mizuho slightly cut its price target on the stock in the wake of the company's most recent delivery numbers.
Mizuho analyst Vijay Rakesh maintained Nio with a Buy rating and lowered the price target from $42 to $40, citing a shortfall in deliveries.
Rakesh highlighted Nio's 31,607 total deliveries in the second quarter, which was below estimates of approximately 33,100. However, he applauded the company for turning in a 29% increase year-over-year despite continued production headwinds from supply chain shortages and production line upgrades.
The Mizuho analyst also noted that Nio's new ET5 sedan will be priced more competitively and could be a "viable competitor" to the Tesla Inc (NASDAQ: NASDAQ:TSLA) Model 3. Still, Rakesh lowered estimates following the worse-than-expected delivery numbers.
"For NIO, we now see F22E/F23E deliveries at 136k/241k units (prior 137k/243k)," the Mizuho analyst wrote in a note to clients.
NIO Price Action: Nio has a 52-week high of $33.80 and a 52-week low of $11.67.
The stock was down 7.61% at $14.82 at time of publication, according to Benzinga Pro.
Photo: courtesy of Nio.
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