China Galaxy International: NIO Group's profit prospects are promising and are expected to achieve a break-even point in the fourth quarter. Maintain the buy rating on the stock and raise the target price.

Analysts at China Galaxy International stated that thanks to strong sales of all three of its brands and cost-cutting measures, NIO Group is expected to achieve a balanced profit and loss in the fourth quarter. NIO's loss narrowed more than expected in the second quarter, and China Galaxy International believes this momentum will continue, with September shipments possibly hitting a historical high. With the contribution of new car models increasing, China Galaxy International has raised its shipment forecasts for NIO in 2025-2027 by 4%, 6%, and 8% respectively. China Galaxy International is optimistic about the upcoming three SUV models, believing that these new vehicles will continue to drive sales and help NIO achieve net profit in 2026. China Galaxy International has raised its revenue and gross margin expectations for NIO in 2025-2027, increasing its earnings per share forecast by 5%-105%. China Galaxy International maintains a buy rating on NIO's H shares, and has raised its target stock price by 37% to HK$65.70.