Why NIO Stock Is Surging Today
Shares of Chinese electric-vehicle maker NIO (NYSE: NIO) were moving higher on Monday, amid a broad U.S.-market rally and following a bullish note from a J.P. Morgan analyst. As of 11 a.m. EST, NIO's American depositary shares were up about 6.2% from Friday's closing price.
In a new note on Monday morning, J.P. Morgan analyst Rebecca Wen raised her price target on NIO to $46 from $40, while maintaining an overweight rating on the shares.
Wen wrote that she believes that NIO will be a "long-term winner" in China's upscale-electric-vehicle market, with a roughly 30% share of the segment by 2025. She believes that "a high valuation can be justified," as NIO is transforming its business model to capture additional revenue through its "platform and content offering," in addition to direct sales of vehicles.
Source Fool.com
