- NYSE: NIO gained 0.46% during Wednesday’s trading session.
- A Morgan Stanley analyst has slashed the price target for Chinese EV makers.
- Nio could use the upcoming earnings call to launch itself back higher.
UPDATE: Nio stock is down 3.5% in mid-session on Thursday to $21.10 even while the tech and growth heavy Nasdaq is up 0.5%. Nasdaq's Golden Dragon China Index (HXC), which tracks Chinese stocks on US exchanges, is down more than 4%. This means that the softness in the market for NIO shares is more attributable to the Chinese market than to the US market. Chinese equities have been on a tear now since March 15 when China's government announced an about-face in support of Chinese equities listed on foreign exchanges. These stocks have been rallying ever since, but it appears Thursday has finally called a pause on the euphoria.
NYSE: NIO worked hard to extend its positive momentum as the stock staged a mid-day rally after falling by nearly 4% in the morning. Shares of Nio added 0.46% and closed the trading session at $21.87. The broader markets cooled off on Wednesday as the 10-year treasury yield and oil prices both surged as investors digested the latest news out of Ukraine. The Dow Jones fell by 449 basis points as the price of oil jumped past $115 per barrel. The S&P 500 dipped by 1.23% and the NASDAQ snapped its recent hot-streak as the tech-heavy index fell by 1.32% during the session.
Stay up to speed with hot stocks' news!
Another day another analyst price target slash for Nio and its competitors. Morgan Stanley analyst Tim Hsiao dropped Nio’s price target from $66.00 per share to $34.00. Hsiao also dropped the price targets for Nio’s domestic rivals as XPeng (NYSE: XPEV) saw its price target fall from $71.00 to $42.00, and Li Auto (NASDAQ: LI) from $49.00 to $41.00. It should be noted that Hsiao remains overweight on all three stocks and that previous price targets were made before the recent correction in the markets. Analysts are just adjusting for the recent price drop, and the overweight rating is what should really matter in the long-run.
NIO stock price
Nio’s stock has seen a positive shift in sentiment ahead of its quarterly earnings call on Thursday after the close. The stock has gained 22% over the past five sessions and is attempting to recapture previous support levels. While most investors and analysts have factored in a potential decrease in sequential deliveries due to ongoing supply chain issues, the focus for Nio should be on the future growth, of which the thesis remains intact.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD retreats toward 1.0850 on modest USD recovery
EUR/USD stays under modest bearish pressure and trades in negative territory at around 1.0850 after closing modestly lower on Thursday. In the absence of macroeconomic data releases, investors will continue to pay close attention to comments from Federal Reserve officials.
GBP/USD holds above 1.2650 following earlier decline
GBP/USD edges higher after falling to a daily low below 1.2650 in the European session on Friday. The US Dollar holds its ground following the selloff seen after April inflation data and makes it difficult for the pair to extend its rebound. Fed policymakers are scheduled to speak later in the day.
Gold climbs to multi-week highs above $2,400
Gold gathered bullish momentum and touched its highest level in nearly a month above $2,400. Although the benchmark 10-year US yield holds steady at around 4.4%, the cautious market stance supports XAU/USD heading into the weekend.
Chainlink social dominance hits six-month peak as LINK extends gains
-637336005550289133_XtraSmall.jpg)
Chainlink (LINK) social dominance increased sharply on Friday, exceeding levels seen in the past six months, along with the token’s price rally that started on Wednesday.
Week ahead: Flash PMIs, UK and Japan CPIs in focus – RBNZ to hold rates
After cool US CPI, attention shifts to UK and Japanese inflation. Flash PMIs will be watched too amid signs of a rebound in Europe. Fed to stay in the spotlight as plethora of speakers, minutes on tap.