Morgan Stanley reiterates NIO’s PT saying the company is now “better positioned to de-listing risks”

Written by Cláudio Afonso | | LinkedIn | Twitter

Morgan Stanley analyst Tim Hsiao reiterated on Monday the firm’s price target on NIO of $34 while maintaining the Overweight rating. The analyst said the company is now “better positioned to hedge ADR de-listing risks,” adding that “all eyes are still on potential A-share listing which will take longer to eventuate.”

The analyst comments “A bit more liquidity, a bit more diversity: Index inclusion should attract some directional shift of passive funds tracking index that could bolster near-term liquidity of H-shares (US$54mn for Nio’s H-share vs. US$176mn for the ADR over the past 3 months). Meanwhile, the stock’s previous SGX listing could also attract some high net worth investors. As mentioned in our previous reports, being triple-listed, NIO is now better positioned to hedge ADR de-listing risks. All eyes are still on potential A-share listing which will take longer to eventuate.”

NIO announced on Monday that it will be included in the Hang Seng TECH Index as a constituent stock, effective June 13, 2022, according to the announcement made by the Hang Seng Indexes Company Limited on Friday.

Earlier today, the company announced that it will report its Q1 2022 financial results on June 9, before the open of the U.S. markets followed by the earnings conference call schedule to start at 8:00 EST.

The electric vehicle maker started being traded on the Singapore Stock Exchange on Friday, an event live streamed by the NIO on its social platforms. CEO William Bin Li unveiled that the company aims to establish a research and development center for artificial intelligence (AI) and autonomous driving (AD) in Singapore. In addition, NIO plans to research institutions to further broaden and enhance its global R&D capabilities while details on the expansion to the country in terms of sales were not mentioned.

Last week, NIO posted its first job vacancy located in France, the 8th European Market for the Chinese electric vehicle manufacturer. “For starting our power business operations in France, we are looking for a NIO Power Network Development Lead,” NIO said on the job description. After Hungary and Austria, France is now officially on NIO‘s plan to early 2023.

Written by Cláudio Afonso | | LinkedIn | Twitter