- JPMorgan analyst Nick Lai upgraded the stock of China-based electric vehicle company Nio Inc (NYSE: NIO) from “Hold” to “Buy” with a price target increase from $14 to $40
Today JPMorgan analyst Nick Lai upgraded the stock of China-based electric vehicle company Nio Inc (NYSE: NIO) from “Hold” to “Buy.” And Lai also increased his price target for the stock from $14 to $40.
The price target is about double the average price of Nio’s stock price over the last month. With the bullish report, the stock price of Nio is trading at 17.4% higher than the previous close as of 10:54 AM ET today. JPMorgan analysts also have an overweight rating on Nio.
Earlier this month, Nio reported that it delivered 12,206 vehicles in the third quarter. This is more than double the number of deliveries during the same period a year ago. And this performance exceeds the high end of the forecast for the quarter. Nio will be reporting its third-quarter earnings in early November.
In the investor report, Lai pointed out that the share of China’s light-vehicle market is accelerating and is expected to quadruple by 2025. And Lai acknowledged that Tesla’s emphasis on the Chinese market is helping lift the interest in rivals like Nio.
Lai is also expecting Nio to be a longer-term bet for the premium smart electric vehicle segment due to its strong products and backing from economic development authorities. And Lai cited Xpeng as another potential long-term leader in the segment.
JPMorgan is not the only financial firm that issued bullish reports for Nio stock recently. Last month, Deutsche Bank initiated coverage on Nio with a “Buy” rating and a $24 price target. And Credit Suisse increased its price target from $17.5 to $25 with a “Buy” rating.
Disclosure: I have a small position of Nio in my stock portfolio