Written by Cláudio Afonso | LinkedIn | X
In a new research note released on Monday, Citi analyst Jeff Chung raised its price target on the electric vehicle maker Nio to $8.90 from $7, while maintaining a Buy rating on the stock.
The firm sees a potential near-term catalyst for the shares from Onvo’s order intake during the Golden Week holiday, with the promotion running until October 8.
If Onvo’s performance meets expectations, it could strengthen investor confidence in Nio’s second sub-brand named Firefly, according to Citi analysts.
The upcoming sub-brand will focus on smaller and more “affordable boutique compact cars” with deliveries of the first model scheduled to begin in China during the first half of next year.
Earlier this month, following the launch of the L60 SUV — the debut model under Nio’s sub-brand Onvo — Citi reaffirmed a $7 price target on the shares indicating a 29 percent upside potential.
With the recent stock price surge, the shares from the EV manufacturer are now trading above that level and approximately 23 percent below the new $8.90 price target the analyst Jeff Chung set on early Monday.
The firm “also boosted the stock’s multiple given the upcoming Tesla Robotaxi event potentially boosting sentiment and car sales high season in the fourth quarter of the year”, as initially reported by The Fly.
The Firefly model has been spotted several times in road tests across China over the past months.
According to official documents released in China, the factory designated for producing Firefly vehicles is expected to have an annual output capacity of 120,000 units.
In a research note on Sunday, Morgan Stanley analyst Tim Hsiao said the new investment will resolve the company’s fundraising debate and enhance near-term cash flow
Written by Cláudio Afonso | LinkedIn | X
