An error has occurred, please try again later. On that basis, his target price for NIO would be greater than $10 a share. But at $12, shares are fairly valued. Hari said in the long-term, the move into cloud gaming will be top of mind for Nvidia investors. The stock has risen so fast that it is hard to keep pace. Fang also believes the company has reduced the rate at which it is burning through cash. When the NIO stock price was above $15. While the competitive landscape in the second half of the fiscal year may be more challenging that in the past, Hari said Nvidia's gaming segment will continue to grow. Fang derives his target price for NIO by assuming the stock should trade at 7.7 times the per-share earnings he expects for 2030, and then discounting that price into today’s dollars. We want to hear from you. Goldman analyst Mark Delaney, who launched coverage of Tesla in April, rates the stock at Buy and has a target of $864 for the share price. The high price target for GS is $355.00 and the low price target for GS is $200.00. The firm has a buy rating on Nvidia, a neutral rating on Advanced Micro Devices and a sell rating on Intel. Bolstered by momentum in its gaming business, Goldman Sachs is bullish on Nvidia, the firm said Wednesday. Goldman Sachs raised its price target on gaming technology company Nvidia to $192 from $179. —with reporting from CNBC's Michael Bloom. Goldman Sachs is right. The reduced price qualifies Tesla for government electric-vehicle subsidies. Goldman is bullish on Nvidia's gaming and data center segments. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. In June, the company delivered 2,476 ES6s, the company’s 5-seater, and 1,264 ES8s, the six- and seven-seater models. He has rated NIO neutral twice and buy twice in the past 16 months.. That is about 37% higher than the shares’ closing price on Tuesday. This copy is for your personal, non-commercial use only. Get this delivered to your inbox, and more info about our products and services. Earlier this month, Nio reported that its vehicle deliveries nearly tripled in June and in the second quarter from the year-earlier periods. Action Alerts PLUS is a registered trademark of TheStreet, Inc. NIO stock was overvalued. Nio shares traded at $12.10, down 6.56%, and have soared 222% year to date through Thursday. The company plans to deliver about 10,000 vehicles in the second quarter of this year. That is vastly better than the returns of the , jumped more than 15% after Goldman Sachs recommended buying the stock, citing the counterintuitive benefits of a price cut by Elon Musk’s company, among other factors. © 2020 CNBC LLC. © 2020 TheStreet, Inc. All rights reserved. Dan is a freelance writer whose work has appeared in The Wall Street Journal, Barron's, Institutional Investor, The Washington Post and other publications. Fang, however, pointed out that Tesla has software and battery technology that differentiates it from other companies, including NIO, a factor that helps explain his more conservative valuation multiple for the Chinese car company. "We expect the company to deliver strong sequential growth in FY3Q (Oct) in the Gaming segment supported by the normalization in channel inventory and the launch of its new products," said Goldman Sachs' Toshiya Hari in a note to clients. “Our U.S. auto team applies 4 [times] EV/revenue to derive Tesla’s target price,” Fang said. Gaming is Nvidia's largest segment, producing $1.31 billion in revenue in its second-quarter, reported last month. Dow Jones Industrial Average Their average twelve-month price target is $247.50, predicting that the stock has a possible upside of 15.59%. To order presentation-ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. For the best Barrons.com experience, please update to a modern browser. Nervous longs read that Goldman Sachs said Sell and dumped their shares, pushing the price down 15% to … Fang says NIO has gotten a boost this year because Tesla (TSLA) has cut its prices, narrowing the cost gap between the vehicles and thus diminishing the prestige appeal of Musk’s brand. All Rights Reserved. Fang's recommendations have produced a negative 5% return in the past year, compared with a 292% return on the shares, according to Bloomberg. There are currently 6 hold ratings and 15 buy ratings for the stock, resulting in a consensus rating of "Buy." The relatively small company, which doesn’t generate positive cash flow, recently signed an agreement with a local government bringing needed funds in the door. His targets look achievable. Auto makers’ P/E ratios are typically lower than for the market as a whole because earnings are volatile and the industry is very competitive. “The liquidity risks that were challenging NIO’s financial sustainability in 2019 have started abating,” wrote Fang in a Wednesday research report. Sign up for free newsletters and get more CNBC delivered to your inbox. While the firm has a buy rating on Nvidia, it has a neutral rating on Advanced Micro Devices and a sell rating on Intel. Global Business and Financial News, Stock Quotes, and Market Data and Analysis. It’s an odd result that highlights the beauty and complexity of markets. However, Hari said improving trends will drive growth going forward. This copy is for your personal, non-commercial use only. Tesla stock is above that target at more than $893 a share. Market manipulator and the world’s number one insider trader Goldman Sachs just lowered its rating on NIO stock from a Hold to a Sell and assigned a $7 price target. NIO sales volumes are up about 30% year over year, despite a weaker start to 2020 because of the Covid-19 pandemic. Nio (NIO) - Get Report shares fell in premarket trading Friday after Goldman Sachs analyst Fei Fang downgraded the stock for the second time in a month - to sell from neutral this time on valuation concerns. Copyright ©2020 Dow Jones & Company, Inc. All Rights Reserved. Tesla’s Nio’s 85% rally in the past month wasn’t accompanied by significant increases for volume and profit forecasts, Goldman Sachs says. Nio delivered 3,740 vehicles in June and 10,331 in the second quarter.
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