JPMorgan analyst Nick Lai has turned bullish on Chinese EV maker Nio Inc. (NIO), upgrading the stock rating to Buy from Hold. Also, the analyst lifted the price target to $8 (22% upside potential), up from $4.80. Further, Lai has placed NIO stock on the “positive catalyst watch,” citing several upcoming events that could drive the stock higher before year-end. NIO stock was up about 11% on Tuesday.
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Importantly, this is the analyst’s second price target increase for Nio in less than two weeks, reflecting a significant shift in his outlook.
Key Catalysts Driving the Upgrade
The analyst highlighted several factors expected to boost Nio stock’s performance through the end of the year:
- Q2 Earnings Report: The upcoming second-quarter earnings results, scheduled for September 2, are a key event ahead. Investors will be watching for signs of margin recovery and delivery momentum, especially after a challenging first half of the year.
- Nio Day: The company’s annual event, set for “late September” in Hangzhou. NIO is expected to disclose the final purchase pricing of the new ES8, which is likely to positively impact sales.
- Guangzhou Auto Show: During the show, which begins November 21, JPMorgan expects Nio to reveal the Onvo L80, a new 5-seater battery electric SUV. The model is expected to compete directly with Tesla’s (TSLA) Model Y and BYD’s (BYDDF) Song Plus, potentially expanding Nio’s reach in the mass-market segment.
Analyst’s Key Expectations
The analyst forecasts a significant increase in vehicle deliveries, projecting a 50% rise in 2025 and a 47% increase in 2026. Lai sees Nio benefiting from its expanding product lineup and improving consumer sentiment.
Also, he anticipates profits to materialize in the second half of 2026, provided that the new models perform well and margins improve.
Upgrade Follows Nio’s August Surge
This bullish review follows a robust month for NIO, which has climbed 30% so far in August. The upside has been fueled by strong pre-orders for the company’s new Onvo L90 and ES8 sport utility vehicles. Both models feature competitive pricing, with Nio’s battery subscription offer reducing the upfront cost by nearly 30%.
Separately, Nio has registered new trademarks for its in-car AI voice assistant, “NOMI,” hinting at its potential use in humanoid robots. This reflects the company’s long-term focus on advanced technology.
Is NIO a Buy, Sell, or Hold?
Overall, Wall Street has a Moderate Buy consensus rating on NIO stock, based on four Buys, six Holds, and one Sell assigned in the last three months. The average NIO stock price target of $5.14 implies 23.51% downside potential from current levels.
