NIO shares rocket higher on JP Morgan upgrade
Shares in Chinese electric vehicle maker NIO have been in hot demand after an analyst at JP Morgan upgraded the stock. Shares were instantly up around 15% on the note in what is now considered a very hot sector.
The analyst, Nick Lai, upgraded the company to overweight with a price target of $40, representing significant upside potential from Thursday's closing price of $27.89. Lai was particularly bullish regarding NIO's 'smart electric vehicle' segment which he thinks puts it at a distinct advantage, along with the company's financial strength and backing by Chinese economic development authorities.
The sector itself is high on investors' watchlist as countries move towards more fuel-efficient technologies and vehicles. The Chinese electric vehicle market is the biggest in the world and according to Lai China's demand for 'new energy vehicles' will quadruple by 2025. Tesla has also placed a huge emphasis on the growing Chinese market.
- NIO is a Shanghai-based electric vehicle maker.
- The company is backed by Chinese giants Tencent and Baidu and also has state-backed investors.
- The stock has received upgrades from JP Morgan, Citigroup and others.
- NIO's share price is up around 600% year to date.
Did you know that you can invest in shares of NIO through an Invest.MT5 account? This account only requires €1 to open and investing fees start at just $0.01 per share with minimum transaction fees of just $1 on US stocks! There are also zero account maintenance fees!
How to invest in NIO shares with Admiral Markets UK Ltd
To get started, follow these five simple steps:
- Log in to your Invest.MT5 account which can be opened in a few minutes here.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in NIO at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, NIO, Daily - Data range: Jun 18, 2019, to Oct 16, 2020, performed on Oct 16, 2020, at 7:09 am BST. Please note: Past performance is not a reliable indicator of future results.
This stock first listed in September 2018, and ended 2019 down -36.89%.
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