What happened

Shares of NIO (NYSE:NIO) climbed 11.5% in September, according to data from S&P Global Market Intelligence. The electric-vehicle (EV) stock climbed thanks to favorable analyst coverage. 

^SPX Chart

^SPX data by YCharts

NIO's share price movement tracked closely in line with the broader market for much of September's trading and then enjoyed a significant boost near the end of the month after favorable coverage from Deutsche Bank. The analyst note published on Sept. 29 outlined a favorable growth case for the auto company and appears to have been the biggest catalyst in the stock's gains last month.

The NIO EC6 Crossover.

Image source: NIO.

So what

Credit Suisse analyst Bin Wang published a note on NIO stock on Sept. 3, raising his one-year price target from $17.50 per share to $25 and citing record delivery volume nearly matching production capacity as a reason for the increase. The updated price target represented a new high among major analysts covering the stock.

Deutsche Bank then initiated coverage on NIO on Sept. 8, with analyst Edison Yu giving the stock a buy rating and setting a $24-per-share price target. Yu followed up the note with an update on Sept. 29, exploring NIO's potential to become the "next iconic automotive brand."

Now what

NIO stock has made additional gains early in October's trading. The company's share price is up roughly 2% in the month so far. 

NIO Chart

NIO data by YCharts

The electric-vehicle market has plenty of room for growth in China, and NIO could deliver huge sales and earnings growth if it maintains a leadership position in the industry. It's still a young company with a growth-dependent valuation, but the business has been posting strong momentum. NIO announced early in October that it had delivered 4,708 vehicles in September, an increase of 133.2% year over year. 

NIO has a market capitalization of $26.6 billion and is valued at roughly 12 times this year's expected sales.