NIO Inc. Shares Continue Climb After Recent Analyst Upgrade


Over the last 14 days, shares of NIO Inc. are up another 60% to $3.44 a share. Since October 2019, shares of NIO are up 152%, as compared to the 8% gain on the Dow Jones Industrial Average, and the 11% gain on the S&P 500.

NIO Limited designs, manufactures, and sells electric vehicles in the People’s Republic of China, Hong Kong, the United States, the United Kingdom, and Germany. The company offers five, six, and seven-seater electric SUVs. It is also involved in the provision of energy and service packages to its users; marketing, design, and technology development activities; manufacture of e-powertrains, battery packs, and components; and sales and after sales management activities.

The company recently posted results that were better than expectations, as deliveries grew 35% year over year. Its net loss for the quarter narrowed to RMB2.52 billion ($352.8 million), or RMB2.48 a share, from RMB2.81 billion, or RMB42.59 a share, year over year. Revenue jumped 25% to RMB1.84 billion ($257 million), which was above estimates calling for RMB1.7 billion. “The electric vehicle sector experienced substantial softness in the second half of 2019 after the reduction of EV subsidies in China,” said Chief Executive William Bin Li. “Despite the challenges, NIO’s sales improved solidly since September,” as quoted by MarketWatch.

Bank of America analyst Ming-Hsun Lee just reiterated a neutral rating on the stock with a price target of $3.90 from $3.80. “Nio’s fundamentals are improving, and this is reflected by improved volume sales and margins, an improvement in product quality following the introduction of 100kWh battery pack and 20kW DC charging pile and the introduction of the new ES8 and a third model, the EC6, the analyst said,” as noted by Benzinga.

At the moment, shares of NIO are up 5% to $3.44 a share on volume of 40.8 million shares, as compared to daily average volume of 49.6 million shares.

As of this writing, Ian Cooper does not have a position in shares of Nio Inc.

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