Shares of Nio Inc. NIO,
jumped 2.7% in prime trading Wednesday after JP Morgan analyst Nick Lai raised its share price target to $ 14 from $ 11, saying he believes demand for new energy form (NEV) in China could accelerate. Meanwhile, Lai kept his assessment neutral, saying he believed ratings were “delayed.” Nine reported earlier Tuesday a slower-than-expected loss and revenue in the second quarter that came up more than forecast. The stock had gone up as much as 12% before opening Tuesday, before the price reversed to close at 8.6%. “Top down, we are optimistic about the ‘smart EVs’ trend, which is particularly rapid in China, including EV start-ups, and we believe that penetration of the demand for NEV in China here can accelerate, more than doubling from 5% in 2019 to 14% by 2025E, ”Lai wrote in Wednesday’s research note. “On the flip side, we believe valuations will be stretched and we expect to see a return on stock prices in the near future – hence our neutral stance.” The stock has so far more than displaced (223.1%) shares so far this year, shares of US-based rival Tesla Inc. TSLA,
also have more than displaced (up 228.5%) and the S&P 500 SPX,
has received 3.2%.
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