UBS raised its rating for Chinese EV maker NIO from "sell" to "neutral", bumping its price target from $1.00 to $16.30 which represents a jump of 1,530%.

The bank's analyst Paul Gong pointed out that NIO's fundamentals have improved with its second-quarter earnings report and third-quarter guidance showing a recovery in auto sales and profitability.

Gong said NIO's successful fundraising in June, amid strong demand for electric vehicles in the global market and a recovery in China, eased his earlier concerns about the company's balance sheet.

The analyst further noted that NIO may still need cash after that and may raise more money to fund its growth.

NIO shares rose 19 percent to $17.84 Tuesday.

NIO shares surge 19% as UBS raises its rating from 'sell' to 'neutral'-CnEVPost

Early this month, Chinese investment bank CICC raised its price target on NIO as it added a record number of new orders in July.

CICC believed that NIO's sales are expected to continue to climb, driven by the EC6 launch and capacity expansion.

CICC raised its EV/Sales unit valuation multiple for NIO to $4 million EV per vehicle, based on NIO's strong sales, order book and operational performance.

The investment bank raised its NIO target price by 11% to $15 at that time, reaffirming its outperform rating.

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