Does Nio Stock Have 45% Upside From Current Levels?

A large NIO store sign and Chinese brand name. NIO is a Chinese EV company
Source: Robert Way /

It has not been an easy run for Nio (NYSE:NIO) lately. Like most growth stocks and electric vehicle (EV) companies not named Tesla (NASDAQ:TSLA), these stocks are stuck in brutal bear markets. However, bulls are hopeful that the current rally in Nio stock can lead to more gains. Further, they’re hoping that a recent upgrade can pave the way to a higher share price, too.

UBS (NYSE:UBS) analyst Paul Gong upgraded Nio from Hold to Buy, but lowered his price target from $42 to $32. However, that still implies about 45% upside from current levels. He noted that while “sales growth slowed with an aging vehicle lineup […] growth should accelerate with new model introductions such as the ET5 midsize sedan.”

The analyst community seemingly agrees with Gong. More than 90% of analysts who cover Nio stock have a Buy rating or equivalent on the stock. According to Barron’s, “There are only six other large, widely covered stocks with that level of support that have also underperformed the market over the past six months.” In this respect, it is in rare company.

Weekly chart of Nio stock
Click to Enlarge
Source: Chart courtesy of TrendSpider

Upgrades aside, Nio stock hasn’t had a great run lately. Shares have seen a roughly 31% decrease so far this year and are down about 60% from the 52-week high of over $55 a share.

Nio began delivering its ET7 vehicle in March 2022. It delivered 9,985 total vehicles in the month, a year-over-year increase of 37.6%. After being released on Apr. 1, that report temporarily sent shares to its highest level since mid-February. However, Nio stock is not out of the woods yet. In fact, far from it.

Shares continue to stall at the declining 10-week moving average. While Nio can stall without breaking down, the real concern is a move below $19.33. That would put it below all of its daily moving averages and the key $20 level. That could open the door down to $17.20, followed by the gap-fill at $15.35.

On the upside, a push above the two-week high — call it $24 — could open the door up to the declining 21-week moving average and the gap-fill near $27.22. Additionally, this was a former support level, so it will be interesting to see if Nio stock can reclaim it.

On the date of publication, Bret Kenwell 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 Publishing Guidelines.

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell

Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell.

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