“Don’t Overlook This,” as Nomura Upgrades NIO Stock to Buy after Q4 Results Signal a Healthier Business Cycle

FomoAnxiety · 2026-03-11T23:01:58+00:00

Nomura upgraded NIO stock to Buy, citing improved Q4 earnings and fundamentals. Despite lowering the price target to $6.60, they find the stock attractive, forecasting growth and profitability. Overall, the consensus is a Moderate Buy.

FomoAnxiety

2026-03-11 23:01:58

Abstract generation in progress

Nomura upgraded NIO NIO -3.42% ▼ stock to Buy from Hold, saying the Chinese EV maker’s latest Q4 earnings report and improving fundamentals signal that it is “finally entering into a healthy business cycle.” The firm set a new price target of $6.60, down from $8.40, but said the stock’s current valuation looks attractive given the company’s trajectory.

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The upgrade comes as NIO continues to streamline operations, expand its product lineup, and push deeper into premium EV segments. These efforts are expected to help the company stabilize growth in a tough competitive environment.

Margins Improving, Profitability in Sight

Nomura said NIO has strengthened over the past two quarters and is “entering into a healthy business cycle,” aided by better execution, improving margins, and a clearer path toward profitability.

The firm trimmed its shipment forecasts for FY26-27 due to a challenging market backdrop. However, Nomura still expects a 25% compound annual growth rate in deliveries from FY25 to FY28, resulting in a revenue growth CAGR of 21% over the same period.

Also, the firm raised its gross margin estimates by 0.7 percentage points for FY26 and 1.1 points for FY27, reflecting expectations for better cost control and operational efficiency. Operating margin forecasts were also lifted by 3.3 points for FY26 and 3.2 points for FY27, helping support the view that NIO could reach adjusted operating profit breakeven in FY26.

Is NIO a Good Stock to Buy?

Overall, Wall Street has a Moderate Buy consensus rating on NIO stock based on five Buys and three Holds assigned in the last three months. The average NIO stock price target of $6.70 implies 21.82% upside potential from current levels.

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