Analysts at Deutsche Bank on Tuesday raised their price target on the American depositary receipts of Nio Inc. (NIO) by $8 to $34, following another record sales month for the Chinese electric-car maker and the belief that its order book will "remain robust." The analysts reiterated their buy rating on the stock. There's some risk that Tesla Inc. (TSLA) could cut the price of its locally made Model Y, "which could potentially hurt near-term sentiment and slow Nio's order book momentum considering it would be a direct competitor to Nio's EC6 and ES6 vehicles. "Beyond that, as BEV adoption increases and word of mouth spreads ... we continue to 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," analyst Edison Yu said in a note. Nio's ADRs surged on Monday after news its sales doubled in October. The ADRs have gained more than 760% this year, compared with gains around 5% for the S&P 500 index.
-Claudia Assis; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
November 03, 2020 11:16 ET (16:16 GMT)
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