Morgan Stanley analyst Tim Hsiao on June 10 reaffirmed an Overweight rating on NIO Inc. (NYSE:NIO) but lowered the price target on the stock to $31 from $34. The analyst believes that compressed Q2 margins occurred due to lower run rate and battery cost inflation but they will be temporary. The analyst remains bullish on the company's robust pipeline and order backlog, which will likely boost 2H sales and output will recover to pre-pandemic levels.