Shares of Chinese electric-vehicle maker NIO (NIO 0.90%) were moving higher in early trading on Wednesday, after a Wall Street analyst raised his bank's price target for the shares in a bullish note.
As of 10:15 a.m. EDT, NIO's American depositary shares were up about 5.1% from Tuesday's closing price.
In a note released on Tuesday afternoon. Citibank analyst Jeff Chung raised the bank's price target on NIO to $72, from $58.30, while reiterating his previous buy rating on the shares.
Chung wrote that he expects NIO to report "robust shipment volume" for June, which he thinks will be followed by sequential quarter-over-quarter growth in the third and fourth quarters of 2021. He now sees NIO delivering 93,000 vehicles in 2021, up from his earlier estimate of 90,000, and has raised his forecasts for 2022 and 2024 while also increasing his target price-to-earnings multiple for NIO's shares.
NIO typically releases its monthly delivery totals shortly after month-end, meaning we could see NIO's results for June as soon as Thursday morning. The company's guidance, which it reiterated earlier this month, calls for a delivery total of between 21,000 and 22,000 vehicles for the second quarter. Through the end of May, it had delivered 13,183 vehicles despite production disruptions caused by shortages of computer chips.
Will NIO outperform its own guidance? I think it's possible but unlikely, given the continued chip-shortage issues. I won't be surprised, however, if its June result puts its second-quarter total at the high end of its guidance range. We'll find out in a day or two.