NIO Stock Forecast: Nio Inc drops as an analyst initiates coverage at market perform
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UPGRADE- NYSE:NIO fell by 3.38% during Friday’s trading session.
- Bernstein initiates coverage but prefers Nio’s rivals.
- EV Makers prepare for third quarter earnings and October deliveries.
NYSE:NIO failed to continue its momentum into the weekend as the Chinese EV maker closed the week below the $40 price level. On Friday, shares of Nio fell by 3.38% and closed the trading session at $39.41. The broader markets shrugged off disappointing big tech earnings from Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN), as all three major indices closed Friday at all-time highs. The EV sector was mixed, but once again paced by Tesla (NASDAQ:TSLA) which continued to skyrocket. Shares of the EV industry leader surged a further 3.43% on Friday, as the stock once again hit a fresh new all-time high and closed at $1,114.00.
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The major catalyst that sent shares of Nio tumbling on Friday was that a Wall Street analyst initiated coverage on the stock. Bernstein started coverage of all three major Chinese EV makers: Nio, XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI). The issue Nio investors had was that Bernstein initiated coverage of XPeng and Li Auto at Outperform, while Nio was only given a Market Perform rating with a price target of $45.00. The analyst stated that ultimately, competition in the luxury EV market could be a problem for Nio in the future.
NIO stock price
The EV sector is preparing for third quarter earnings reports over the next few weeks, as well as October vehicle delivery numbers next week. Nio rival BYD already reported its earnings earlier this week and saw a disappointing 27.5% drop in quarterly profits. The monthly delivery figures will no doubt have an affect on the earnings reports later in November, so Nio investors will be keeping a close eye on the report when it is released on Monday or Tuesday.
- NYSE:NIO fell by 3.38% during Friday’s trading session.
- Bernstein initiates coverage but prefers Nio’s rivals.
- EV Makers prepare for third quarter earnings and October deliveries.
NYSE:NIO failed to continue its momentum into the weekend as the Chinese EV maker closed the week below the $40 price level. On Friday, shares of Nio fell by 3.38% and closed the trading session at $39.41. The broader markets shrugged off disappointing big tech earnings from Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN), as all three major indices closed Friday at all-time highs. The EV sector was mixed, but once again paced by Tesla (NASDAQ:TSLA) which continued to skyrocket. Shares of the EV industry leader surged a further 3.43% on Friday, as the stock once again hit a fresh new all-time high and closed at $1,114.00.
Stay up to speed with hot stocks' news!
The major catalyst that sent shares of Nio tumbling on Friday was that a Wall Street analyst initiated coverage on the stock. Bernstein started coverage of all three major Chinese EV makers: Nio, XPeng (NYSE:XPEV), and Li Auto (NASDAQ:LI). The issue Nio investors had was that Bernstein initiated coverage of XPeng and Li Auto at Outperform, while Nio was only given a Market Perform rating with a price target of $45.00. The analyst stated that ultimately, competition in the luxury EV market could be a problem for Nio in the future.
NIO stock price
The EV sector is preparing for third quarter earnings reports over the next few weeks, as well as October vehicle delivery numbers next week. Nio rival BYD already reported its earnings earlier this week and saw a disappointing 27.5% drop in quarterly profits. The monthly delivery figures will no doubt have an affect on the earnings reports later in November, so Nio investors will be keeping a close eye on the report when it is released on Monday or Tuesday.
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