Nio was up 19% on Wednesday after receiving an “overweight” update and a $ 40 target from JPMorgan, representing an 85% increase from Tuesday’s close.
JPMorgan stated that it lacks a large 438% uptick since the beginning of the year in Nio’s stock, given its previous unbiased rating, but said it believed there was more room for the Chinese manufacturer of high-end electric vehicles.
According to JPMorgan, Tesla’s good fortune in China is causing a phenomenon of “rising tides lift all ships” than being a situation of “the winner takes it all away. “
And in the Chinese electric vehicle market, JPMorgan said he hopes Nio “will be a long-term winner in the Chinese brands premium. “
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Potential catalysts that can simply approach JPMorgan’s $40 jpMorgan target come with a solid earnings report in November, a robust order eBook update for your car line, and the introduction of a new sedán to be unveiled in December.
And while Nio continues to gain advantages from Tesla’s cemented track, JPMorgan believes it could dominate up to 30% of the premium electric vehicle market, achieving 334,000 sets by 2025.