JPMorgan hiked the price target on the stock to $8 from $4.80 on the hopes that three events toward year-end will further lead the shares north, as per TheFly.
Shares of Chinese EV maker Nio Inc. (NIO) jumped 9% on Tuesday morning after JPMorgan upgraded the stock to ‘Overweight’ from ‘Neutral’.
The brokerage also hiked the price target on Nio to $8 from $4.80 on the hopes that three events toward year-end will further lead the stock north, as per TheFly. The new price target of $8 represents an upside of over 31% from the stock’s closing price on Monday.
JPMorgan is now looking forward to Nio’s second-quarter earnings due on September 2, the formal price announcement of the company’s new ES8 SUV, and the annual Nio Day event on September 20, among others. Nio opened pre-orders for the all-new ES8 three-row SUV earlier this month. The vehicle is slated to be officially launched in late September.
The analyst also expects that Nio will showcase its upcoming new 5-seater BEV SUV, the Onvo L80, at the Guangzhou Auto Show that starts on November 21. JPMorgan now projects the company will deliver 50% and 47% volume growth in 2025 and 2026, respectively.
On Stocktwits, retail sentiment around Nio stock trended within the ‘extremely bullish’ territory over the past 24 hours, while message volume stayed at ‘extremely high’ levels.
A Stocktwits user believes the current rally is just the beginning.
Another user expects the stock to hit $10 by the end of the week.
Meanwhile, Morgan Stanley analyst Tim Hsiao stuck by his ‘Overweight’ rating on the stock with a $6.50 price target. “Our checks suggest ES8 pre-orders may have surpassed 30k at the weekend and kept rising,” Hsiao said, as reported by CNBC. “While real demand still hinges on order conversion, constructive feedback underpins the market’s belief that ES8 could go viral as L90 did last month, underpinning a monthly run rate of 40-50k units for NIO Group from Oct.”
In 2024, Nio delivered 221,970 vehicles, reflecting an increase of 38.7% from 2024. This included deliveries of both the company’s premium Nio brand vehicles and vehicles from its cheaper Onvo brand, launched in May 2024. The company’s third brand, Firefly, started delivering vehicles earlier this year.
According to data from Koyfin, 12 of 26 analysts covering Nio rate it ‘Buy’ or higher, while 13 rate it a ‘Hold’ and one rates it a ‘Strong Sell.’ The average price target on the stock is $4.95.
NIO stock has gained 52% this year and about 64% over the past 12 months.
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