NIO is going to rally in the near term - Morgan Stanley

Jun. 30, 2022 7:11 AM ETNIO Inc. (NIO)By: Clark Schultz, SA News Editor12 Comments

NIO store sign and customer in electric car store

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Morgan Stanley issued a tactical idea call on NIO (NYSE:NIO) on its view the share price will rise in absolute terms over the next 15 days.

The firm noted that NIO's H shares underperformed HSCI Index by 9% in recent trading and the U.S.-traded shares have also lagged.

"While sluggish industry sentiment resulted in the sell-off, we believe NIO’s upbeat June sales together with good volume trajectory into 2H, aided by a strong product pipeline, will revive investor confidence in the company’s operations and trigger a rebound in the stock," advised analyst Tim Hsiao.

The firm has an Overweight rating on NIO (NIO) and its price target of $31 reps more than 40% upside potential.

NIO (NIO) is due to report monthly deliveries on July 1 and earnings during the first part of August.

Shares of NIO (NIO) fell 1.56% in premarket trading on Thursday to $21.52.

Read the latest breakdowns from Seeking Alpha authors on NIO.

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