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Hong Kong-listed shares of Nio (HK:9866) closed 12.44% higher today after Deutsche Bank analyst Edison Yu said the electric vehicle (EV) company is embarking on the most important product cycle in the company’s history.
Yu reiterated a Buy rating and a $45.00 per share price target on NYSE-listed Nio stock, which surged 16.7% yesterday and is up a further 3% in pre-open Wednesday.
“Volumes have been under pressure over the past few quarters due to operational bottlenecks and COVID lock-downs, but we think deliveries are on track to increase from 7k/month in May to 25k exiting the year, which will shift the narrative away from supply constraints to robust product supercycle,” Yu told clients in a note.
The analyst added that NIO’s ET7 and ET5 sedans “are set to be the most desired cars in the China premium market this year, potentially representing category-defining products.”
Yu expects the EV company to deliver 160,000 units in 2022 and double that figure in 2023.
Nio (NYSE:NIO) stock price closed at $18.66 yesterday.
