Morgan Stanley Raises Price Target on EV Nio (NIO) Shares, Sees Nearly 70% Upside

December 2, 2021 6:55 AM EST
Get Alerts NIO Hot Sheet
Price: $20.90 -0.99%

Rating Summary:
    20 Buy, 4 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 30 | Down: 16 | New: 32
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Shares of Nio (NYSE: NIO) are up nearly 2% in pre-open Thursday after Morgan Stanley analyst Tim Hsiao reiterated an Overweight rating and raised the price target to $66.00 per share from the prior $64.00.

The analyst expects Nio to gather strength in 2022 fueled by the sales ramp-up of new model launches.

NIO stock setup looks attractive at current levels given that shares underperformed NASDAQ by roughly 10% since May. The analyst noted “expectations reset” and forecasts that are now far more reasonable.

“The upcoming model ET7 successfully rolled off the assembly line on November 29. While market concerns over a potential delay in delivery may linger, the successful pre-production allows NIO to up to a 3-month lead time to ramp up output and prepare manufacturing necessities. More punctual delivery of ET7 would also reinforce investors' confidence in the ET5 launch. NIO reported 10,878 units of total deliveries in Nov-21, which set a record high of monthly deliveries and represented 2.4% growth vs. Sept-21, helped by the catch-up of deliveries after the disruption in Oct-21,” Hsiao said in a client note.

Moreover, the analyst believes Nio is well-positioned to be one of the key players that will benefit from “structural tailwind with EV development still anchoring China’s new economic agenda in 2022, with a broader range of capabilities beyond the cars and superior branding, covering software, services, energy solutions.”

Sales forecasts are hiked at Morgan Stanley for Nio in the 2021-2030 period with Hsiao especially expecting more notable volume growth starting from 2023.

Nio shares are down 28.4% YTD.

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