Nio (NYSE:NIO) stock is on the move Wednesday after one analyst released a new price prediction and rating for the electric vehicle (EV) company’s shares.
Barclays analyst Jiong Shao is behind the news boosting NIO stock higher today. The analysts initiated coverage of the company’s shares, along with shares of Li Auto (NASDAQ:LI) and Xpeng (NYSE:XPEV), in a note to investors.
Let’s start with that NIO Stock price prediction first. Shao set a price target of $34 per share for NIO today. That’s below the analyst consensus rating of $55.57 per share. However, it still represents a potential 37.7% upside over the stock’s closing price on Tuesday.
Next up is the new rating for NIO stock that has investors excited today. The Barclays analyst kicks off their coverage of the shares with an overweight rating. The current consensus rating for NIO stock is a buy, which comes from 10 buy ratings and one hold rating.
So why is Shao so bullish on NIO stock? The analyst said the following in a letter obtained by Seeking Alpha.
“We believe that the rapid adoption of EVs around the world and booming EV sales have presented China’s EV makers a rare opportunity to not only take a sizable market share of the domestic auto market – the largest in the world with about 25-30% global share by units sold per annum – but also build a dominant position on the world stage.”
NIO stock is up 5% as of Wednesday afternoon as it recovers from a sell-off at the start of the year that still has it down 22.5% year-to-date.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.