Nio (NYSE: NIO) Stock prices have been on a tear lately, and that continued as this trading week started. The Chinese electric vehicle (EV) manufacturer’s U.S. shares rose as much as nearly 15% this morning. At 2:45 PM ET, these shares were still trading 11.1% higher.
Today’s move comes after a Wall Street analyst became optimistic about the company and its new mass-market brand. The stock is now up about 33% over the past three months.
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According to reports, Macquarie’s Eugene Hsiao upgraded his rating on Nio to the equivalent of a Buy on Monday. (He previously had a neutral rating on the stock.) Hsiao’s $6.60 price target would represent a 25.5% gain from Friday’s closing price. Hsiao upgraded the shares because he thinks Nio’s fourth-quarter revenue could get a boost from a new catalyst.
October is the first full month for shipments of Nio’s new Onvo brand. The Onvo L60 mid-size SUV has a low starting price of around $30,000 and is intended to take on Tesla‘s Model Y.
Investors took note of Hsiao’s optimistic belief that the Onvo model will accelerate sales for Nio in the fourth quarter. Nio should provide guidance for the fourth quarter when it reports third-quarter results, and those results should be released in the coming weeks. Investors may have already expected Onvo to become a new catalyst to increase revenue. But if the company impresses investors with updates on its new brand, there could still be more room for Nio stock.
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Howard Smith has positions in Nio and Tesla. The Motley Fool holds and recommends positions in Tesla. The Motley Fool has a disclosure policy.
Why Nio Stock Surged Higher Monday was originally published by The Motley Fool
