UPDATE: BofA Securities Upgrades NIO (NIO) to Buy
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BofA Securities analyst Ming Hsun Lee upgraded NIO (NYSE: NIO) from Neutral to Buy with a price target of $26.00 (from $25.00).
The analyst comments "NIO is trading at 1.7x 1-year forward EV/sales, 1SD below its historical average. This seems attractive given the improving outlook – NIO traded at a similar valuation only during 2H19-1Q20 when it faced sales slowdown, product recalls and financing challenges, while its current fundamental is stronger in terms of brand equity, sales growth, R&D capability, and improved cash flow. Factoring in the latest model schedule and production recovery pace, we lift 2022/23E sales volume by 3%/8%. We lift our PO to USD26/HKD202, based on unchanged target EV/sales to a slightly higher 2022E sales."
Shares of NIO closed at $14.31 yesterday.
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