Why Nio Stock Is in High Gear Today
After opening Thursday on a soft note, electric vehicle stock Nio (NYSE: NIO) swiftly reversed course and jumped 2.7% by 12:25 p.m. ET after an analyst picked Nio as an attractive stock to buy as we enter the new year.
Deutsche Bank analyst Edison Yu added Nio to the bank's fresh money list as it sees the stock's current price a "great entry point" for 2022, given the recent price drop in Nio's shares. Specifically, Yu believes some of the biggest headwinds for Nio that have impacted investor sentiment can be reversed in the coming year. These include supply constraints, lack of new model launches, and the risk of potential delisting from U.S. stock markets. All of them could potentially be turned around by Nio's three new launches lined up for 2022 and its plans to boost manufacturing capacity to 600,000 units, according to Deutsche Bank.
Image source: Nio.
Source Fool.com
