NIO-SW (09866) shares surged 5.54% in early trading on Tuesday, following Citi's issuance of a 30-day positive "catalyst watch" on the Chinese electric vehicle maker. The bullish outlook is driven by expectations of robust second-quarter shipments and an accelerated product launch timeline.
Citi analyst Jeff Chung anticipates NIO's Q2 deliveries to exceed 63,000 vehicles, marking a 50% increase from the previous quarter and potentially setting a new company record. This optimistic forecast is attributed to the strength of NIO's new product offerings and the company's aggressive expansion plans.
Adding to the positive sentiment, Chung revealed that NIO is expected to launch up to 10 new models before the end of the year, significantly earlier than market consensus. Furthermore, the company plans to introduce new driver-assistance features in May and is actively working on cost reduction strategies. These factors have contributed to Citi maintaining a "Buy" rating on NIO stock with a price target of $8.10 for its American depository receipts (ADRs).
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.