Analysis Report | NIO's Target Price Raised! Dell Becomes Wall Street's "Top Pick" for US IT Hardware Stocks

Daiwa: Maintains NIO "Buy" rating, raises target price by 8% to $12.7

Based on the latest closing price of $11, this price implies a 15% upside!

The bank believes that NIO's net loss in the second quarter expanded by 123% YoY, mainly due to weak overall gross margin and high operating costs. Management expects monthly sales volume to reach 18,000 vehicles in August and September, while average monthly deliveries in the fourth quarter may exceed 20,000 vehicles.

At the same time, management aims for a double-digit gross margin in the third quarter and 15% in the fourth quarter. The bank has lowered its average selling price forecast for the company in the second half of the year, reflecting a higher proportion of lower-priced models sold, and has revised down its revenue forecast for 2023-2025 by 4% to 9%.

Morgan Stanley: Raises Dell's target price to $70

Based on the latest closing price of $68.19, this price implies a 3% upside!

The bank considers Dell to be the top choice in the IT hardware sector. Analysts point out that catalysts include the analyst conference on October 5 and Dell's improvements in execution and cost management. In addition, Dell is becoming a winner in the field of generative artificial intelligence, with more winners to come in the future.

Citigroup: Reiterates "Neutral" rating on Intel, target price $34

Based on the latest closing price of $36.61, this price implies a 7% downside.

The bank states that although Intel CEO Pat Gelsinger's comments on the company's third-quarter performance guidance and foundry prepayments are "clearly a positive development," this giant has not yet escaped its predicament.

"We still believe that Intel should exit the foundry business, as the company has almost no successful opportunities for various reasons."

Citigroup: Maintains "Buy" rating on BYD Electronics, raises target price by 62% to HK$42

Based on the latest closing price of HK$37.5, this price implies a 12% upside!

The bank expects all of BYD Electronics' businesses in the second half of the year to grow compared to the first half, and the gross margin to improve due to economies of scale. The company's management expects better performance in the third and fourth quarters in terms of revenue and profitability compared to the second quarter.

The bank states that it is becoming more optimistic about BYD Electronics, believing that the growth of the automotive business should be stronger than expected, and the consumer electronics business may experience a more significant recovery in profit margins.

CICC: Gives Meituan "Outperform" rating, target price HK$57

Based on the latest closing price of HK$54.9, this price implies a 4% upside! The bank believes that the high cost-effectiveness of products and strong supply chain capabilities are the two major factors supporting the company's continued rapid growth. In the face of more rational consumption by local consumers and inflationary pressures in overseas markets, Miniso is expected to continue benefiting from its competitive business model.

The company has started a brand upgrade, transitioning from a sales channel brand to a product brand, which helps improve customer loyalty and product gross margin. The bank believes that Miniso's expansion capabilities and global operating model are rare in the Chinese market and also competitive in the local market, therefore deserving a higher valuation premium.