Why NIO Stock Is Charging Higher Today
American depositary shares of Chinese electric-vehicle maker NIO (NYSE: NIO) are rising today, up 14.9% as of 9:45 a.m. EDT, after a J.P. Morgan analyst upgraded the stock in a bullish note.
In a note released before the U.S. markets opened on Wednesday, analyst Nick Lai upgraded NIO to overweight from neutral, with a price target of $40, up from $14.
Lai wrote that the share of China's light-vehicle market held by "new energy vehicles" -- China's catch-all term for hybrids, fuel cell vehicles, and battery-electrics -- is accelerating and will quadruple by 2025. Lai sees that as a rising tide, driven to some extent by Tesla's recent emphasis on the Chinese market, that will lift many boats, including (and perhaps especially) NIO's.
Source Fool.com
