Nio Climbs on UBS Upgrade to ‘Buy’, Price Target Cut By Investing.com
© Reuters By Dhirendra Tripathi
Investing.com – Nio ADRs (NYSE:) traded 8% higher Monday after UBS analyst Paul Gong upgraded it to ‘buy’ with a target of $32, still 34% higher after the surge.
The analyst had a target of $46 for the ADRs with a ‘neutral’ rating, according to StreetInsider.
Nio began delivering its ET7 mid/large sedan late last month and should launch the ET5 medium sedan in September and the mid/large ES7 SUV in late 2022.
“These products offer stronger powertrains, a better digital experience and more advanced autonomous driving than its four-year-old platform,” Gong wrote in his note.
The analyst expects ET5 to become a major volume model, with more than 10,000 unit sales likely per month, as it has a similar powertrain and intelligence specifications as ET7 but is cheaper by 100,000 ($15,723).
A recent survey by UBS showed that Nio’s brand recognition is on the up. Nio’s consumer mindshare is now better than BMW, Audi, or Mercedes, according to Gong.
Nio sold 9,985 vehicles in March, up about 38%. The company said it plans to unveil the NIO ES8, ES6, and EC6 SUVs in May.
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