Written by Cláudio Afonso | LinkedIn | X
Macquarie analyst Eugene Hsiao upgraded Nio from a “Neutral” to an “Outperform” rating, lifting the price target on the EV maker’s Hong Kong-listed shares from HK$52 to HK$65.
The new price target results in a potential 56% upside from Monday’s closing price of HK$41.55, where Nio shares gained 5.5%. Hsiao also raised the firm’s target for the U.S.-listed shares to $6.60.
Shares of the Shanghai-headquartered EV maker continue to struggle year to date, with its Hong Kong-listed shares down approximately 40% and U.S.-listed shares down 42%.
Chinese stocks have seen increased volatility since late September when Beijing teased financial stimulus causing a surge in the U.S.-listed Chinese stocks.
Since then, as investors await specific policy measures to support economic growth, China stocks have given up part of the gains from late last month.
Last Friday, China’s Xinhua Agency reported that the National People’s Congress will take place from November 4 to 8, as investors eye more details on the financial stimulus.
As of the time of writing, Nio shares are trading 2.6% higher at $5.40 during Monday’s pre-market trading session.
Earlier today, the company announced it reached 2,600 battery swap stations in China and a total of 56 million battery swaps provided since the first one took place in 2018. In Europe, Nio has 56 station.
Last week, the electric vehicle maker held its launch event in the Middle East and North African region.
Earlier this month, Nio announced the formation of a joint venture with its major investor CYVN Holdings, an Abu Dhabi-based investment firm, to expand to the Middle East and North Africa (MENA) region under the name Nio MENA.
Written by Cláudio Afonso | LinkedIn | X
