Still buying these 3 electric car stocks? Weight in analyzer
Electric cars are growing in popularity, a trend that is characterized by social acceptance, green mentality, and a belief that there is no defect in the internal combustion engine. Some of those defects are addressed by electric vehicles (EVs). They promise low emissions, low pollution from the car and high performance off the mark. For the present, the main drawbacks are the high cost and relatively low range of current battery technology. Nevertheless, many consumers have decided that the benefits are out of cost, and EV sales are increasing. China, in particular, has long been known for its pollution and smog issues, and the government is actively advancing EVs as a potential factor. In addition, EVs, with their quick acceleration and (usually) short distances, are a ready fit with China’s crowded – and growing – urban centers. In a comprehensive review of the Chinese EV sector, Jefferies analyst Alexius Li said, “We are creative on the outlook for NEVs in China as the country moves forward with ‘electrification trends’. While global automaker ‘VVD’ quickly leads Are increasing. BEV with new model of energy saving vehicles (HEVs and PHEVs), Chinese vehicle manufacturer (both legacy and startup) entry to comply with top-down target to reduce annual corporate average fuel consumption (CAFC) Are driven to accelerate the adoption of – levels, city commuting models, and premium-positioned advanced models. “Against this backdrop, Lee has pulled out a Chinese EV stock that is worth the price, and two that have given investors Should be avoided for now. We used TipRanks’ database to explore what other Wall Street analysts had to say about the potential of these three. Lee Auto (LI) claims to be the country’s best-selling model of Chinese EV company, Lee Auto Electric Vehicle. In this one October, Li ONE sold 3,700 units, taking the total number sold to 22,000 in the first year of production. At current sales and production rates, Lee expects the company to double its annual sales numbers this year. This is a big deal, in the world’s largest electric car market. China produces more than half of all EVs sold globally, and nearly all electric busses. Lee Auto, founded in 2015, has focused on plug-in hybrids – models that can plug into a charging station to retain batteries, but also have a combustion engine to compensate for low-density charging networks. The Le One is a full-size SUV hybrid electric that has quickly gained popularity in its market. In July of 2020, Lee Auto went public on NASDAQ. At the IPO, the company started with a share price of $ 11.50, and closed the first day with a gain of 40%. In the following months, LI has appreciated 116%. The company reported strong earnings, leading to a jump in share profits. In 3Q20, the last quarter reported, LI showed US $ 363 million in sales, 28% sequentially, and a lion’s share of the company’s US $ 369.8 million in total revenue. Also positive, Lee reported a 149% sequential increase in cash flow to US $ 110.4 million. Lee is impressed with Lee Auto’s technology, note, “Lee One’s EREV powertrain has proven to be a huge success due to (1) extended range at low speeds, (2) limited impact, (3) easy by car buyers Approval. Financial costs are estimated at 2525 (LFP) and FY27 (NMC), before the LI AUTO automaker makes OCF positive and profitable versus peer, profit is sustainable. “The analyst said,” LI AUTO is the first. China successfully. Commercializes Extended-Range Electric Vehicles (EREV) which is a solution to the range anxiety of drivers and the high BOM of automakers. Powered by fuel, the ER system provides an alternative source of power in addition to the battery pack, during low-temp environments. Quite outstanding where the BEV can lose up to 50% of the printed range. ”Seeing the company’s technology as the main attraction for customers. And investors began their coverage of LI with a Buy rating to Lee and a $ 44.50 price target. This figure shows a 25% upside growth in the coming year. (To see Lee’s track record, click here) Wall Street has a broad consensus with Lee. It is an offer to buy shares. LI shares have a strong Buy consensus rating based on 6 reviews including 5 Buen and 1 Hold. The shares have a price cap of $ 35.60 and a median price target of $ 44.18 with a suggested take-in of 24. % Upside for next 12 months. (See LI Stock Analysis at TipRank) Nio (NIO) While Lee Auto has the best-selling EV model in China, competing company Nio is dying for the top market-share spot with Elon Musk’s Tesla in the Chinese EV market. With a market cap of $ 90 billion, Nio is the largest among China’s domestic electric car manufacturers. The company has a diverse line of products, including lithium-ion battery SUVs and water-powered electric motor sports cars. Two sedans and a minivan are on the drawing board for future releases. Meanwhile, Nio’s vehicles are popular. The company reported 43,728 vehicle deliveries in 2020, double the 2019 figure, and car deliveries increased for 5 straight months in the last five months of the year. December delivery crossed 7,000 vehicles. Nio’s revenue has been steadily growing, and the second and third quarter of 2020 have shown significant year-over-year gains. In Q2, profit was 137%; In Q3, it was 150%. In absolute numbers, Q3 revenue hit $ 654 million. However, in shares with a 1016% stake in the last 52 weeks, there is little room for further growth – at least according to Jefferies Lee. The analyst initiated coverage on NIO with a hold rating and $ 60 price target. This figure is a slight 3% upside. “We use the DCF methodology to value NIOs. In our DCF model, we factor in solid volume growth, positive net profit from FY24 and positive FCF from FY23. We offer a WACC of 8.1% and Implement a terminal growth rate of 5% and hit the target. A price of US $ 60, “Lee explained. Overall, the Nio Analyst Consensus maintains a Moderate Buy rating, with 13 reviews on record, including 7 Buys and 6 Holds. The NIO is selling for $ 57.71, and recent share gains pushed that price slightly below the $ 57.79 average price target. (See Nio Stock Analysis at TipRank) XPeng, Inc. (XPEV) XPeng is another company like Li at the mid-range price level of China’s electric car market. The company has two models in production, the G3 SUV and the P7 sedan. Both are long-range EV models, capable of running 500 to 700 kilometers on a single charge, and carry advanced autopilot systems for driver assistance. The G3 began delivery in December 2018; P7, in June 2020. In another comparison with Li Auto, XPeng also went public in the US markets in summer 2020. On the last day of August, the stock premiered at $ 23.10 on NY.10 and in an IPO. The company raised $ 1.5 billion. The stock has gained 127% since the IPO and the company reached a market cap of $ 37.4 billion. Increase in sales on the back of the stock gain. XPeng reported 8,578 vehicles delivered in Q3 2020, up 265% from the year-ago quarter. The bulk of those deliveries were P7 sedans – the model saw a jump from 325 in Q3 to 325 in 6,210. This is a truly impressive gain of 342%, translating to strong sales for the quarter at $ 310 million in revenue. Jefferies Lee sees XPN as a well-positioned company that has possibly maximized its short-term growth. He writes, “XPENG has a very strong risk for technology-driven growth … while we favor its specialty in autonomous driving and power consumption efficiency, our FY21 forecast consensus of 120% sales growth Low, while our FY22 forecast of 129% is higher. Slower market acceptance and higher competition in the Rmb200-300K segment. ”To this end, Lee holds XPEV down and its $ 54.40 price target is a slight upside of ~ 4%. The recent gain in XPEV has pushed the price slightly above the average price target of $ 51.25; the stock is now selling for $ 52.46. It comes with a Moderate by Analyst consensus rating based on 8 reviews 5 buys, 2 halts, and breaks down to 1 sale. (See XPVV stock analysis at TipRanks) To find good ideas for EV stock trading at attractive valuations, buy from TipRank’s Best Stocks, a newly launched Tool, which unites all equity insights of TNRank. Disclaimer: Select the opinions expressed in this article as a whole. Da is an analyst. 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