NIO Expected to See Near-Term Rally Says Morgan Stanley
Morgan Stanley shared a research tactical idea on NIO, stating that it believes the company’s shares will rise in absolute terms for the next 15 days, reports Seeking Alpha.
Despite recent selloffs of NIO and other EV stocks, the firm believes the automaker will be turned around in the months to come, following China’s COVID-19 lockdowns hampering sales in Q2.
Analyst Tim Hsiao says the automaker’s government subsidies and general sales momentum will put the company in a good position in the next few months.
NIO Hits Milestone of 200,000 Vehicle Deliveries https://t.co/c9nxv6VAco
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In a note, Hsiao said, “The associated production disruption also adversely affects the ramp-up/launch of NIO’s new models and aggravates the market’s concerns over NIO’s sales momentum. With gradual reopening in the Yangtze River Delta region as well as the Rmb10k subsidy provided by the Shanghai government to consumers to replace old cars with electric cars, we believe NIO is well positioned to capitalize on such local stimulus programs and resume sales momentum in the upcoming months.”
Morgan Stanley currently has a price target of $34 on NIO with an Overweight rating.
On Tuesday in premarket trading, NIO’s shares jumped 4.59 percent; currently, shares are up 5.1% for the day at $17.42 as of writing.