- Deutsche Bank lifted its profit and sales forecasts for Chinese electric car manufacturer Nio on Tuesday, citing the company’s promising move into the premium autos sector.
- In a note probing whether Nio can be “the next iconic auto brand,” analysts led by Edison Yu cited growing favorability in the expanding Chinese market.
- One recent study found Nio boasts higher odds of customer referral in the country than Tesla, BMW, and Mercedes Benz.
- Deutsche Bank reiterated its “buy” rating and $24 target price for Nio shares. The target implies a 28% leap from Monday’s closing level over the next 12 months.
- Watch Nio trade live here.
Nio may not have the intense following enjoyed by industry leader Tesla, but Deutsche Bank thinks the electric car manufacturer can quickly dominate the expanding Chinese market.
In a Tuesday note delving into whether the company can become “the next iconic auto brand,” analysts led by Edison Yu highlighted Nio’s growth in the competitive electric-vehicle market. For one, sales are trending higher. The team projected record third- and fourth-quarter deliveries and raised its estimates for full-year sales and earnings.
“As [battery-powered electric vehicle] adoption increases and word of mouth spreads, we believe Nio can take material share in the premium segment as consumers begin to understand the value proposition and quality of its products and services,” Deutsche Bank said.
Read more: JPMORGAN: The best defenses against stock-market crashes are delivering their weakest results in a decade. Here are 3 ways to adjust your portfolio for this predicament.
The lifted forecast backs the firm’s “buy” rating and $24 price target for Nio shares. That target implies a 28% rally from Nio’s Monday closing level over the next 12 months.
Nio gained as much as 7% following the note’s release.