Macquarie upgrades Nio to Outperform on L90 launch

Macquarie upgraded Nio (NIO) to Outperform from Neutral with a $5.50 price target. The firm believes the L90 will be Nio’s most competitive offering. The L90 is a six-seat large SUV near the price of the five-seat Tesla (TSLA) Model Y, the analyst tells investors in a research note. Macquarie believes the L90 is a a better value versus Li Auto’s (LI) recent i8, offer a 17% lower entry price and many similar features. It sees potential for the L90 to sell between 8,000-12,000 units per month, solving Nio’s core problem of low volumes.