Shares of Nio (NIO -1.65%) climbed on Wednesday, following positive analyst remarks. As of 2:55 p.m. ET, the Chinese electric-vehicle (EV) maker's stock price was up more than 5%.
Barclays analyst Jiong Shao placed an overweight rating on Nio's shares on Tuesday. He sees the company's stock price surging roughly 30% to $34 per share, fueled by rapidly rising sales of EVs in China and other markets.
Shao noted that China is one of the world's largest and most profitable auto markets, due in part to the Chinese government's support of its nascent EV industry. He believes Nio is well-positioned to claim a leading share of China's lucrative and fast-growing electric-car market.
Shao's comments followed upbeat commentary from Credit Suisse analyst Bin Wang earlier this month. Wang is even more bullish on Nio's stock. He sees its share price more than tripling to $83, driven by new-vehicle launches.
Wang expects Nio's new luxury ET7 sedan and midsize ET5 sedan, due out in March and September, respectively, to help the carmaker boost its vehicle deliveries by 64% year over year to 150,000 in 2022. Moreover, like Shao, Wang sees significant potential for Nio to expand into Europe and other EV markets in the coming years.
With Nio's attractive growth opportunities in China and Europe, it's easy to see why Wall Street is getting excited about the company's stock. If the EV leader can find success in these booming markets -- and its 109% deliveries growth in 2021 suggests it will -- more gains could lie ahead for investors.