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Is the Bottom in for Nio Stock? Analyst Weighs In

Earlier this month, Deutsche Bank’s Edison Yu issued a Catalyst Call on Nio (NIO) $NIO Inc (NIO.US)$ stock, recommending it as a short-term play, based on the premise the stock was ripe for a turnaround after falling ~30% from February's peak.

The idea did not work out as planned initially. While Yu concedes his call might have been too early as he underestimated a number of “tactical factors,” the analyst sees several reasons why investor sentiment “should be close to bottoming.” Well, it appears the market has been taking notes, as shares climbed 7% higher in Monday’s session.

Whether the short-term idea works out or not, with the long-term in mind, Yu sticks with a Buy rating and $70 price target, suggesting shares will surge ~71% over the next 12 months. (To watch Yu’s track record, click here)

Looking at the consensus breakdown, almost all of Yu’s colleagues agree; barring one Hold, all 7 other recent reviews are positive, culminating in a Strong Buy consensus rating. The average price target is a more modest $57.13, yet the figure still implies one-year upside of 35%

Article excerpted from Yahoo.
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