NIO Stock Forecast: Nio Inc resumes the rally ahead of earnings on March 24

NYSE: NIO jumped 7.45% on Tuesday in anticipation of Thursday's earnings report.
Deutsche Bank analyst Edison Yu lowers his price target but remains bullish.
Nio announces it is not planning to raise its vehicle prices.

Stocks Reporter FXStreet

Update: Shares of Chinese Electric Vehicle (EV) maker NIO regained bullish momentum and jumped to fresh three-week highs of $22.09 before reversing to $21.77 at the close. The stock price was still up 7.45% on the day. NIO shares had a negative start to the week on Monday, as Deutsche Bank analyst Edison Yu slashed his price target on Nio stock to $50 a share from $70 per share. The company’s stock price resumed its uptrend on Tuesday, in anticipation of earnings as well as on speculation of the launch of a new car model in the coming weeks. Hawkish Fed Chair Jerome Powell-led upbeat mood on Wall Street also helped NIO staged an impressive turnaround.

NYSE: NIO kicked its earnings week off on the back foot as the broader markets retreated from the red–hot close to last week. On Monday, shares of Nio dropped by 2.88% and closed the trading session at $20.26. After their best week since 2020, the broader markets cooled off on Monday as all three major indices inched lower to start the week. The Dow Jones fell by 201 basis points, the benchmark S&P 500 dropped by 0.04%, and the NASDAQ sank by 0.40% during the session. The moves lower came as oil futures spiked to start the week as the EU weighs a ban on Russian oil.

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The big news for Nio on Monday was a price downgrade from Deutsche Bank analyst, Edison Yu. While the price target from $70 to $50 didn’t sit well with investors, Yu remains openly bullish about the company for the year ahead. Yu does expect a softer earnings report from Nio for the quarter due to ‘operational bottlenecks’ and supply chain issues, as well as new COVID-19 lockdowns in China. The analyst goes on to say that the ET7 and ET5 models will be the most sought after electric vehicles in China during 2022.

NIO stock price

Ahead of its quarterly earnings call on Thursday after the closing bell, Nio has announced that it has no plans to raise prices for its vehicles. As mentioned the company has been fighting supply chain issues and the ongoing global chip shortage, but it reiterated that it would not follow in the footsteps of Tesla (NASDAQ: TSLA) in raising the vehicle prices in China.

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Stocks Reporter

FXStreet

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