NIO stock jumps nearly 10% on Goldman upgrade! What’s next?

Shares in NIO have been trending lower in recent months but that could change with a new upgrade from investment bank Goldman Sachs. Analysts at the firm believe the worst times are now behind the electric vehicle maker based in China.

Investors certainly got excited on the news as the stock has jumped nearly 10% in the last few days. While the firm’s analysts increased its buy rating to ‘buy’ from ‘neutral’ the price target of $56 per share is still the same.

This represents a move of nearly 50% higher.

The analysts particularly like the fact that the newest model is the company’s first sedan product which has a price point in line with the Mercedes E-class and BMW 5 series. Furthermore, NIO is expanding into other countries such as Norway while adding another 120 retail locations this year.

Source: Admirals MetaTrader 5, #NIO.US, Weekly – Data range: from 9 Sep 2018 to 8 Oct 2021, performed on 8 Oct 2021 at 8:30 pm GMT. Please note: Past performance is not a reliable indicator of future results.  

The huge surge higher in NIO’s share price during 2020 is clear to see. However, the price retraced aggressively back to the weekly 50 exponential moving average (red line). While the buyers have tried to stage a rally higher several times, the price hasn’t had any follow through.

Could the Goldman Sachs upgrade of the stock be the trigger for further upside? It’s certainly one to watch!

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