Nio (NYSE:NIO) stock is on the move today thanks to a new rating from UBS analyst Paul Gong.
That new rating has Gong bumping shares of NIO stock up from the firm’s previous “hold” rating to a new “buy” rating. It’s worth noting that this matches the analyst consensus, which is made up of 14 “buy” ratings and a single “hold” rating.
It’s also worth mentioning that the UBS analyst cut his price target for NIO stock alongside the upgrade. This has the new price prediction sitting at $32 per share, as compared to the previous $42 target. For the record, that’s still above NIO’s closing price of $21.93 per share on Friday. However, it is below the consensus price target of $48.97 per share.
So why exactly is Gong upgrading NIO stock today? Here’s what he said in a note obtained by CNBC.
“We upgrade NIO to Buy after its share price is down 44% in the past 12 months. While its sales volume growth has slowed with aging products, we believe its three new model launches slated for 2022, based on its second-generation NT2.0 platform, could drive sales acceleration.”
The new rating for NIO stock has shares seeing a decent amount of trading this morning. As of this writing, around 65 million shares have changed hands. That’s just about ready to pass the company’s daily average trading volume of 69.6 million shares.
NIO stock is up 8.2% as of noon Monday but is down 29.2% since the start of the year.
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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.