Written by Cláudio Afonso | info@claudio-afonso.com
Bernstein analyst Eunice Lee reiterated a Market Perform rating and $40.00 price target (down from $45) on NIO after the company unveiled that is set to offer its shares for trading in Hong Kong as soon as March 10th.
Lee sees the latest move as a positive step towards eliminating the delisting risks concerning ADRs on American Exchanges. After Hong Kong and Singapore, the analyst sees potential for Nio to be traded on Shanghai stock exchange in the future.
“Listing by introduction is a quicker way of getting listed and poses no dilution to existing shareholders. The downside of a secondary listing is that the company is restricted from raising fresh capital or issuing new shares in the next 6 months. NIO will not be eligible for trading on the Hong Kong-China Stock Connect. In comparison, XPeng and Li Auto both have dual-primary listings in the U.S. and Hong Kong and would be eligible for trading by qualified Chinese investors through the Stock Connect.”
According to CNBC, last January, Bernstein released a 172-page report titled “Chinese Equities: ‘Uninvestable’ No More”: “We believe there is a case to add back China exposure to global portfolios due to six key reasons,” analysts at the investment research firm said.
They pointed to expectations for growth in new financing, easier monetary policy and more attractive stock valuations relative to the rest of the world. Other factors included a rare opportunity to pick stocks, growing foreign inflows and increased earnings. — CNBC added.
Bernstein initiated coverage on NIO in October 2021 with Market Perform Rating and a Price Target of $45.
The company announced recently the opening of its new NIO House located in Yueqing Bay, Zhejiang Province in eastern China. The Chinese EV maker has currently 44 Nio Houses across the globe and opened its first European one in September 2021 located in Oslo (Norway) — the country with the highest EV penetration.
Last week, NDS (Navigation Data Standard) Association announced the Chinese EV maker Nio as their new member. Martin Schleicher, NDS Chairman, describes Nio as a “strong Asian partner” that has a “future vision”. NDS offers a well-defined spec for how to store map data and it allows flexibility for customized user experiences. Its maps work worldwide and are globally adopted.
“Navigation technology and globally reliable data standards are another field that NIO can advance with its vision and development strength. Therefore, the NDS membership is a great enrichment for the future of this global association of innovation-focused companies and their common goals.” — NDS stated.
Recently, Nio posted 8 new job vacancies in London (England) suggesting that it can be its next European Market after the already announced Sweden, Denmark, Germany and The Netherlands. Nio started selling its ES8 Model in late 2021, in Norway (the country with the highest EV penetration) and is now intensifying its move to the United Kingdom. Nio has currently 11 vacancies for England, eight of them posted during the last 24h on LinkedIn.
Written by Cláudio Afonso | info@claudio-afonso.com