Credit Suisse analyst Bin Wang has raised the price target of US-listed Chinese EV company Nio by 42.86 percent from $17.50 to $25, a new Wall Street high, with an “outperform” rating.
Wang noted that Nio's August delivery volume hit a record high of 3,965 units, up 104% year-over-year and 12% month-over-month, close to its current maximum capacity of monthly 4k units.
Nio guided its capacity will increase to 5,000 units in September and guided its monthly new orders to hit record high in August-above 5k units, he noted.
Wang attributes the higher new order flow to some front-loading demand before the discontinuation of unlimited free battery swap.
Last week, UBS raised its rating for 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.
Days later, Wang Sheng, a member of CICC's management committee and head of investment banking, said at a event in China that Nio, Li Auto and Xpeng Motors have a combined market capitalization of $50 billion, while Tesla has a market capitalization of $450 billion, meaning the three Chinese electric car companies have room to rise.
Nio shares went down by 6 percent on Thursday to trade at $18.7 during the broader market selloff in the US lead by tech stocks including Apple and Tesla.
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