Wall Street analysts have a strong buy consensus on NIO stock (NYSE:NIO). NIO stock has risen roughly 30% in the previous five days as a result of two positive ratings.
Analysts at Deutsche Bank have dubbed NIO their top Chinese EV selection.
The Wall Street Opinion on NIO Stock
There isnt a single Wall Street analyst who thinks NIO stock (NYSE:NIO) is a bad investment. All but one of the nine analysts who have covered the company in the last three months had a buy recommendation:
With a consensus target price of $31.84, NIO stock (NYSE:NIO) has a 47% upside potential, based on the recent share price of $21.5 per share.
Deutsche Banks top pick is NIO.
NIO was dubbed the top Chinese electric vehicle (EV) producer by Deutsche Bank analyst Edison Yu a few days ago. According to Yu, sales of NIOs earlier models are still strong. According to early comments, NIOs premium ET5 sedan is also selling well.
Yu also said in a statement to his clients that the moment has arrived for NIO stock to shine brilliantly.
With that, the Deutsche Bank analyst put out his optimistic price target of $39 per share for NIO. This means that the current price of $21.40 per share could go up by more than 80%.
NIO stock (NYSE:NIO) rose 12% during the September 12 trading session as a result of this increased price target and another optimistic recommendation from Bank of America analyst Ming-Hsun Lee.
What Does the Market Say?
Based on the state of the economy as a whole and the latest numbers from the Consumer Price Index (CPIDas), interest rates are likely to go up.
So, growth companies like NIO should continue to lose money in the short term because their future profits are less attractive than bonds, which offer better rates in times like the present.
NIOs shares have already lost around 34% of their value this year. This is also because of how taking threats off the list affects regulatory tensions between the US and China.
In any event, NIOs journey should remain difficult. However, Wall Street believes that this stocks future remains bright. Analysts predict that NIOs sales will increase by 78% next year, compared to an industry average of 34% for the whole EV market.
Furthermore, NIOs breakthrough fast-charging switching battery technology puts it ahead of its European and American competition. NIOs entry into the European market and the opening of a production plant in Europe are both more signs of exponential growth over the long term.
Featured Image- Megapixl @RobertWei
Author: Okoro Chinedu
Market Jar Media Inc.
#170 – 422 Richards Street
Vancouver, BC, Canada
Disclaimer: The views, suggestions, and opinions expressed here are the sole responsibility of the experts. No Open Headline journalist was involved in the writing and production of this article.