NIO : nieuw koersdoel 39$ (Deutsche Bank)
Here's Why Nio Stock Is Exploding Today
By Neha Chamaria - Sep 12, 2022 at 11:41AM
Key Points
Nio's latest EV model could be a game changer for the company.
Rapidly rising deliveries and better margins should boost Nio's stock price.
Motley Fool Issues Rare “All In” Buy Alert
NYSE: NIO
Nio Inc.
Nio Inc. Stock Quote
Market Cap
$32B
Today's Change
(13.52%) $2.59
Current Price
$21.75
Price as of September 12, 2022, 4:00 p.m. ET
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An analyst expects Nio stock to double as the electric vehicle maker gears up for big months ahead.
What happened
Nio (NIO 13.52%) stock exploded this morning and was trading nearly 10.3% higher as of 11 a.m. ET Monday.
An analyst who closely tracks the Chinese electric vehicle (EV) market just singled out the hot stock as his top EV pick in China and sees Nio shares doubling in value over the next 12 months, backed by two big growth catalysts. The prospect of doubling their money has investors loading up on Nio stock today.
So what
Deutsche Bank analyst Edison Yu has two reasons why Nio could outperform and emerge as the leader among EV start-ups, according to The Fly.
First, Yu expects Nio's ET5 sedan to rapidly become a top-selling premium EV given the initial customer response to the car and Nio's efforts to boost production to meet demand.
Nio will deliver the first batch of its mid-sized sedan, the ET5, on Sept. 30. Nio has reportedly received nearly 200,000 preorders for the sedan, according to China-based new-energy-vehicle website CnEvPost. Local Chinese media has even compared the frenzy in ET5 orders with that of Tesla's Model 3 when it was first delivered in China in early 2020.
The second factor that excites Yu about Nio's prospects is stable sales volumes from existing models. Yu points out how despite being older and more expensive models (Nio is now focused on low- and midrange cars with a mass-market brand in the pipeline as well), Nio's existing products continue to clock steady sales, indicating strong brand power and service.
For perspective, Nio delivered 25,059 EVs in its second quarter. Although a quarter of the sales volumes came from its premium ET7 sedan, which was first delivered in March, the remaining came from three models that Nio launched between 2017 and 2020.
Yu picked Nio as his top Chinese EV stock and posited a price target of $39 per share.
undefined Stock Quote
NYSE: NIO
Nio Inc.
Today's Change
(13.52%) US$ 2,59
Current Price
US$ 21,75