EVs: Mizuho cuts price targets on Tesla and Nio

Yahoo Finance Live's Jared Blikre breaks down Mizuho's price target cuts on EV competitors Tesla and Nio.

Video Transcript

JARED BLIKRE: But I do want to move on because I am looking at the EV space, and we have Mizuho making and actually cutting its price target on Tesla and NIO, though it did keep the firm's buy ratings on both. That's after the two automakers posted their latest production and delivery data. Analysts are still seeing strong demand as China moves to electrify, and he characterized the quarter ended September as being, quote, "mostly in line as supply and logistics remain a challenge."

Now, Mizuho lowered its Tesla target to $370 from 391 and change, noting that FX headwinds, read the soaring dollar, could weigh on quarterly revenue, estimated to be $22 and 1/2 billion. The firm now sees NIO stock, by the way, trading to $40, instead of $42.

And let me pull up the YFi Interactive here one more time, where I have our heatmap. I'm going to check on NIO first. Let's pull that up. This is a year-to-date chart. You can see mostly rangebound since about March of this year, although it did have that big decline earlier. You pull up a max chart going to its IPO date on the IPO day at the New York Stock Exchange in 2018. And this has been a slow, steady downtrend right here. Not really breaking that trend line, so have a little bit more work to do on a breakout basis.

And then take a look at Tesla here. I'm going to narrow this to the last five years. And I just want to show the massive consolidations that we oftentimes have in this stock. We are in the midst of another one. Have yet to break out of this play either, Dave.

DAVE BRIGGS: Jared, you did not explain what the dip bicep is. Is that the Blikre bicep?

JARED BLIKRE: Oh, wow, is that a--

SEANA SMITH: Shots fired.

JARED BLIKRE: Is that a subtle dig here at my chart pattern naming authority, or is that a dig on my biceps? I don't know, Dave.

SEANA SMITH: What was it, bulging bicep pattern?

JARED BLIKRE: That's what Sozzi calls it. A lot of these stocks--

SEANA SMITH: I like it.

JARED BLIKRE: --that have round tripped their gains throughout the pandemic. That is a bulging bicep--

SEANA SMITH: Dave, we need to start incorporating that into the show daily somehow, bulging bicep pattern for Sozz.

JARED BLIKRE: You guys trademark it. I will NFT it. We're going to be rich.

SEANA SMITH: There we go.

JARED BLIKRE: Guaranteed.

SEANA SMITH: That's all we need to know.

DAVE BRIGGS: All right.