Despite the anticipated headwinds from Donald Trump’s ‘drill baby drill’ approach, electric vehicle (EV) stocks have recorded exceptional gains in recent weeks.
The American depository of the Chinese EV firm Nio (NYSE: NIO) experienced similar performance earlier in December, though they proved far less decisive.
Indeed, after rising from about $4.40 to approximately $5.18 earlier this month, NIO shares retraced and are again 3.75% in the red in the last 30 days to their press time price of $4.50.
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Wall Street analysts remain positive about Nio stock
Though the outlook for the greater EV industry and the expected deterioration in trade relations between the U.S. and China might indicate significant trouble ahead for Nio and similar companies, Wall Street experts have remained surprisingly bullish.
Specifically, the aggregate stock analysis platform TipRanks shows that, as of December 17, NIO shares are overall considered a ‘moderate buy.’ Furthermore, out of the 12 total ratings, as many as six are ‘buy,’ four are ‘hold,’ and only two experts recommend selling.
Regarding the 12-month price targets, Nio stock is generally expected to rise 31.94% from its press time price and reach $5.99. The highest forecast – provided by Citi (NYSE: C) – stands at $8.90, while the lowest – assigned by Goldman Sachs (NYSE: GS) – sees an incoming downturn to $3.90.
While some expect the surprisingly bullish aggregate predictions to result from the relative scarcity of recent coverage, a closer examination demonstrates that even the most recent revisions gravitate toward optimism.
Analysts revise Nio stock price target
In fact, the Street High price target was assigned by Citi as recently as December 3 due to the strong expectations from Nio’s pivot away from high research and development (R&D) expenditure and toward a focus on greater sales for the new Onvo brand.
Along with the hopes for the future, the banking giant relied on the published – and stronger than before – sales figures for the Chinese EV maker.
Elsewhere, another bullish recent forecast – provided late in November by DBS’ Rachel Miu – set its sights on $7.90 for NIO stock. Previously, DBS explained the optimistic price forecasts and the ‘buy’ rating by the growing strength of the EV maker’s figures, better financial conditions due to significant investments in China, and a stronger global presence arising from a partnership with CYVN Holdings.
Finally, not all of the recent analyses have been positive. Along with Goldman Sachs’ relatively recent bearish forecast, Barclays also described Nio shares as ‘underweight’ – ‘sell’ – and predicted a fall to $4.
Featured image via Shutterstock
