NIO Shares Rocket Higher On JP Morgan Upgrade

By Staff of Admiral Markets

Friday, October 16, 2020 4:36 AM EST

Shares in Chinese electric vehicle maker NIO (NIO) have been in hot demand after an analyst at JP Morgan upgraded the stock. Shares were instantly up around 15% on the note in what is now considered a very hot sector.

NIO shares rocket higher on JP Morgan upgrade

The analyst, Nick Lai, upgraded the company to overweight with a price target of $40, representing significant upside potential from Thursday's closing price of $27.89. Lai was particularly bullish regarding NIO's 'smart electric vehicle' segment which he thinks puts it at a distinct advantage, along with the company's financial strength and backing by Chinese economic development authorities.

The sector itself is high on investors' watchlist as countries move towards more fuel-efficient technologies and vehicles. The Chinese electric vehicle market is the biggest in the world and according to Lai China's demand for 'new energy vehicles' will quadruple by 2025. Tesla (TSLA) has also placed a huge emphasis on the growing Chinese market.

NIO is a Shanghai-based electric vehicle maker.
The company is backed by Chinese giants Tencent and Baidu and also has state-backed investors.
The stock has received upgrades from JP Morgan, Citigroup and others.
NIO's share price is up around 600% year to date.

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William K. • 4 years ago • Member's comment

Isn't it interesting that JP Morgan was also recently fined for some rather illegal trading practice? At least I think I read that. So I would be inclined to examine all of it's actions quite closely.

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