Analysis Report | Is NVIDIA "Very Cheap" and Can Still Rise 50%? NIO and Xiaomi Target Prices Significantly Raised!

Melius Research: Target Price for NVIDIA is $730

According to FactSet data, based on the closing price on Tuesday, NVIDIA's expected P/E ratio is about 29 times based on the projected earnings for 2024, slightly higher than the average valuation of 23 times for a basket of AI-related stocks.

Melius Research wrote: "Based on the projected earnings growth in 2024, NVIDIA is 'cheaper' than Alphabet, Microsoft, and Apple."

See "Target Price of $730! Analyst: NVIDIA is 'Cheaper' than Microsoft and Apple" for more details.

If calculated based on the latest closing price of $492.64, this price implies a 48% upside potential!

CICC: Maintains NIO's "Outperform" Rating, Raises Target Price by 35.1% to HK$100

If calculated based on the latest closing price of HK$83.75, this price implies a 19% upside potential!

The bank stated that NIO's second-quarter revenue was RMB 8.77 billion, with a non-GAAP net loss of RMB 5.45 billion. The company experienced the NT2.0 product iteration phase in the second quarter, resulting in an increased loss that fell short of market expectations. The gross margin of the automotive segment improved on a quarterly basis, but the scale effect weakened, leading to an expanded loss. The quarterly delivery guidance reached a new high, and funds from CYVN's strategic equity investment were received.

The report stated that NIO's NOP Plus is accelerating iteration, and the layout of battery swap stations is being expanded, which is expected to become the two major engines driving sales growth. The current stock price corresponds to a forecasted market-to-sales ratio of 1 times for 2024. Considering that the company is still in a period of strategic investment, with relatively rigid expense outlays and intense market competition, the bank has revised down the profit forecasts for 2023 and 2024 to a loss of RMB 16.6 billion and a loss of RMB 9.8 billion, respectively (previously a loss of RMB 15.2 billion and a profit of RMB 167 million).

CICC: Maintains Haidilao's "Outperform" Rating, Raises Target Price by 23% to HK$28.2

If calculated based on the latest closing price of HK$21.35, this price implies a 32% upside potential!

The bank stated that Haidilao's revenue for the first half of the year increased by 24.6% YoY to RMB 18.89 billion, with a net profit of RMB 2.26 billion, compared to a net profit of RMB 73 million in the same period last year. The performance is in line with previous guidance. Excluding exchange gains of RMB 193 million and the net amount of reversed impairment losses of RMB 9.395 million, the bank estimates that the recurring net profit margin for the first half of the year has exceeded 10%, mainly benefiting from the operating leverage effect under improved table turnover, especially reflected in the optimization of cost-to-revenue ratio, labor costs, and other expenses. The gross profit margin is expected to increase by 2 percentage points on an annual basis.

The bank believes that considering the improvement in Haidilao's table turnover and profit optimization, it has raised its profit forecast for this year by 31% to 4.8 billion yuan, and raised next year's forecast by 21% to 5.6 billion yuan.

DBS: Maintains "Buy" rating on Xiaomi, raises target price by 38% to HK$18

If calculated based on the latest closing price of HK$12.36, this price implies a 46% upside potential!

The bank stated that although the smartphone market is declining, Xiaomi's market share in Europe, the Middle East, and Latin America has further increased. It ranks second in Europe and the Middle East, and third in Latin America. It is expected to maintain market share throughout the year and outperform other Android phone manufacturers in the industry.

The bank expects Xiaomi's overall gross profit margin to improve from 17% last year to 21% in 2025, benefiting from the increased contribution of high-margin internet services, which will increase from 10% last year to 12% in 2025. The bank has raised its profit forecast for Xiaomi for the next two years by 18% and 10% respectively to reflect the improvement in various business gross profit margins.