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The analyst upgraded the American depository shares of the Chinese electric car maker to Overweight and a price target of $20.50. Shares were trading around that level, up about 15% during Wednesday’s mid-session
The stock’s breakout this week began when UBS analyst Paul Gong upgraded the stock to Neutral from Sell citing a strong global market appetite for electric vehicles. That call shot up shares as much as 19% on Tuesday. Gong had previously been bearish on the company dubbed “The Tesla of China.”
Earlier this month NIO reported 2nd quarter results which beat analyst expectations. Founder and chairman William Li noted “historically high vehicle gross margin of 9.7%, lowest-ever operating losses and more importantly, a positive cash flow from operations for the first time in our history.”
The stock has also seen some double digit percentage daily gains throughout the summer, surging 22% during one session after reporting a whopping 179% for its June sales.
It hasn’t been a totally smooth ride for investors. In late July, Goldman Sachs analyst Fei Fang downgraded NIO to Sell saying “the current share price reflects over-optimism.” That call sent the stock tumbling 14% in one day.
Year-to-date NIO is up about 616%.