NIO-SW (09866) shares soared 5.13% during intraday trading on Tuesday, marking a significant upward movement for the electric vehicle maker's stock.
The surge appears to be driven by a major analyst rating upgrade. Goldman Sachs upgraded NIO Inc. Class A to a Buy rating from Hold/Neutral, with a new price target of HK$55.00. The upgrade was based on expectations that NIO's luxury ES8 and ES9 SUVs will sell well, which should improve the company's profitability and free cash flow.
Analysts project that NIO could reach break-even operating profit in 2026 and achieve its first positive operating profit in history by 2027, with sales expected to nearly double from 2025 levels. This optimistic outlook from a prominent financial institution has generated positive sentiment among investors.
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