Nio Stock Is Trading Higher Wednesday: What's Happening?

NIO Inc (NYSE:NIO) shares are trading higher on Wednesday amid positive analyst coverage. Here’s what you need to know.

What Happened: Mizuho analyst Vijay Rakesh maintained Nio with a Neutral rating and raised the price target from $6 to $7.

With NIO shares up approximately 105% over the past three months, multiple analysts have adjusted price targets in recent weeks including Bank of America and Mizuho, though both reiterated their Neutral stances on the firm. UBS also upgraded the stock to Buy last week and lifted its target from $6.20 to $8.50.

Nio shares may also be getting a boost on Wednesday after Citigroup reportedly added the stock to its 30-day upside catalyst watch, according to an Investing.com report.

The report indicates that Citi raised Nio’s Hong Kong share price target by roughly 5% and maintained its Buy rating. The firm’s addition of Nio to its catalyst watch suggests Citi expects the shares to quickly rise in the short term.

The positive analyst sentiment follows the reveal of Nio’s third-generation ES8 at a much lower-than-expected starting price during a weekend event. Citi reportedly praised Nio’s strong sales performance, especially for its battery EV models, with the firm noting that aggressive pricing is expected to further increase sales in the coming years.

However, the aggressive pricing strategy has raised some concerns about margins amid the pricing competition among Chinese EV manufacturers. Nio’s shares fell earlier this week on pricing concerns, and the company’s second-quarter earnings missed expectations due to a wider-than-expected loss.

NIO Price Action: Nio shares were up 2.74% at $7.12 at the time of publication on Wednesday, according to Benzinga Pro.

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