Nio Stock News and Forecast: NIO pops as Deutsche reaffirms Buy rating
- NIO stock soars over 13% on Monday as markets rally.
- NIO remains a buy at Deutsche Bank.
- NIO is down 35% year to date and over 40% from a year ago.
Nio (NIO) stock performed well on Monday as equities rallied again after a strong Friday. NIO though was a notable gainer as it surged over 13% higher to close Monday at $21.75.
NIO stock news
The news in my opinion is not news at all. Rather the reporting is perhaps a bit overly bullish. Deutsche Bank merely reiterated its Buy rating on NIO. It did not upgrade its rating, and it kept its price target at $39. This is the same Deutsche Bank that only as recently as August lowered its price target from $45 to $39 and maintained a buy rating. This seems a bit like a fuss about nothing.
Others on social media are pointing to Bank of America raising their price target for NIO. Correct, they moved it from $29 to...wait for it...$30!
Meanwhile, Citi dropped its price target from $41.10 to $31.30 after results last week. JPMorgan also cut its price target from $30 to $25, last week. Nio reported earnings last week that were mixed. EPS came in lower than consensus at $-0.20 versus $-0.18, but revenue of $1.54 billion did beat their mark by just over $100 million. Nio said it expects Q3 vehicle deliveries to be 32,000 at the midpoint of the guided range. Overall then, analysts remain mostly bullish on the stock with a current mean price target of $32.99 from Refinitiv. Much ado about nothing then.
NIO stock forecast
NIO has now more or less retraced to the 200-day moving average. This is a big resistance level and may prove difficult to break at $22.32. Most likely the move on Monday was a combination of risk-on and China-on, as well as reports that the proposed restrictions on NVIDIA chips going to China will not affect Nio. Breaking the 200-day moving average will then see $24.51 as the next resistance, which would confirm a new bullish trend. $20 is the pivot.
NIO stock, daily
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Author
Ivan Brian
FXStreet
Ivan Brian started his career with AIB Bank in corporate finance and then worked for seven years at Baxter. He started as a macro analyst before becoming Head of Research and then CFO.
