Barclays (LON:BARC) analyst Jiong Shao reiterated an Overweight rating and a $34.00 per share price target on Nio (NYSE:NIO) stock following the quarterly earnings report released last week.
The analyst praised the early performance of NIOs ET7 & ET5 sedans, saying the bank expects the two models to become best-sellers after deliveries start.
Shao said NIOs planned capacity expansion in 2022 and the rollout of two new sedans are expected to boost deliveries and revenue in the second half of the year, even though the current chip shortage and tighter coronavirus restriction measures could weigh on the near-term demand.
The analyst listed several things he liked in the earnings report, including solid delivery performance and vehicle gross margins; pre-orders of new models, the ET7 and ET5, are ahead of managements prior expectations; new factory on track to be in production in September; continued strong demand for existing models; and high market share in targeted vehicle class.
Nio stock price is up nearly 2% in pre-open Monday.
By Senad Karaahmetovic