Drew Angerer/Getty Images News
Morgan Stanley weighed in on NIO’s (NYSE:NIO) announcement from earlier on Friday that Chief Financial Officer Steven Wei Feng has resigned for personal reasons, to be replaced by Senior Vice President Stanley Yu Qu.
Analyst Tim Hsiao noted that C-level change is rarely positive news, but added that NIO’s (NIO) sound operation as of late should help to ease market concern and thus prevent any panic knee-jerk reaction.
“We don’t expect this change to disrupt NIO’s current operation or future fund-raising plans… Our recent channel checks suggest NIO’s orders have been steady at a ~5k weekly run rate. With improving mix/scale and reduction in promotions for certain models, we expect 2Q GPM to meet the company’s guidance of double digits, or our expectation of low teens.”
In addition, Morgan Stanley thinks the Onvo L60 remains a more crucial stock catalyst for NIO (NIO) as more feedback on product, orders, and price is released ahead of the official beginning of deliveries in September.
The firm kept an Overweight rating on NIO (NIO) in place.
Shares of NIO (NIO) fell 2.05% in premarket trading on Friday.