(InvestorPlace) – Nio (NYSE:NIO) news for Wednesday includes Citi analysts weighing in on the stock boosting its price higher.
Citi analysts have strong expectations for Nio. In a recent update, they continued to hold a positive position on the electric vehicle (EV) company. To go along with it, they also increased their price target for the stock to $46.40.
That new price target for Nio stock is no doubt good news for investors. It represents a roughly 29.4% jump from Citi’s previous price target of $35.87 for NIO stock. It’s also 30.7% higher than the stock’s closing price on Tuesday.
Citi analysts said the following in a note obtained by Seeking Alpha.
“We reiterate our positive view on Nio based on: (1) very strong order backlog (1-5-1.8 month level) with high margin visibility; (2) 3Q20E gross processing margin likely to reach 13-16% level, followed by 4Q20E gross processing margin at 22-25% level; (3) increase in market share; (4) battery cost reduction; and (5) policy tailwind related to exports.”
It’s also worth pointing out that other news has been a boon to NIO stock of late. That includes talk yesterday that the company is preparing to expand its business into Europe. The current expectations have this expansion taking place next year.
Investors in Nio stock will also want to keep their ears open when earnings news rolls in this month. The company will release its earnings report on Nov. 17. It’s also worth noting that it’s seen positive growth in EV deliveries these last couple of months.
NIO stock was up 9.2% as of Wednesday morning.
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.