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Barclays Remains Bullish on EV Maker Nio Stock, Urges Investors to ‘Ignore Near-term Noise’ -Breaking

by Mike Robinson

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© Reuters Barclays Remains Bullish on EV Maker Nio (NIO) Stock, Urges Investors to ‘Ignore Near-term Noise’

After last week’s quarterly earnings report, Jiong Shao from Barclays reiterated his Overweight rating with a target price of $34.00 per share for Nio stock (NYSE:).

The analyst praised the early performance of NIOs ET7 & ET5 sedans, saying the bank expects the two models to become best-sellers after deliveries start.

Shao stated that NIOs 2022 capacity expansion and two new sedans will boost revenue and deliveries in the second quarter of this year. This is despite the fact that the chip shortage and stricter coronavirus restrictions could impact near-term demand.

Analyst cited several positive aspects of the earnings report. These included solid delivery performance, vehicle gross margins, and preorders for new models. Managements had previously anticipated that ET7 and ET5 would be available in September. The new factory is on schedule to begin production in September. There will also continue strong demand for the existing models.

Pre-open Monday saw a nearly 22% increase in the Nio stock market.

By Senad Karaahmetovic

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