We recently published 10 Hot Stocks Investors Are Buying, 5 Break Fresh Records. NIO Inc. (NYSE:NIO) is one of the best performers on Tuesday.
NIO saw its share prices jump to a nearly one-year high on Tuesday after an investment firm turned bullish on the company.
At intra-day trading, NIO Inc. (NYSE:NIO) jumped to its highest day price of $7.09, or just 62 cents shy of its 52-week high of $7.71 on September 30 last year, before paring gains to close the day just up by 8.17 percent at $7.02 apiece.
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The rally followed a market report from UBS that upgraded the company to “buy” from “neutral” previously, while also raising its price target to $8.5 from $6.2. The new price target marked a 21 percent upside from its latest closing price.
According to UBS, the revision reflected confidence for the company amid the launch of the L90 and ES8 sports utility vehicles, as well as a recent $1 billion share sale that tapered concerns about its steep losses.
UBS said NIO Inc.’s (NYSE:NIO) financial improvements could close its valuation gap with its competitor, XPeng Inc.
UBS expects NIO Inc. (NYSE:NIO) to book a 50 percent growth in revenues, higher than XPeng, to be supported by a richer product mix.
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Disclosure: None. This article is originally published at Insider Monkey.