October 16, 2020 09:30
Shares in Chinese electric vehicle maker NIO have been in hot demand after an analyst at JP Morgan upgraded the stock. Shares were instantly up around 15% on the note in what is now considered a very hot sector.
The analyst, Nick Lai, upgraded the company to overweight with a price target of $40, representing significant upside potential from Thursday’s closing price of $27.89. Lai was particularly bullish regarding NIO’s ‘smart electric vehicle’ segment which he thinks puts it at a distinct advantage, along with the company’s financial strength and backing by Chinese economic development authorities.
The sector itself is high on investors’ watchlist as countries move towards more fuel-efficient technologies and vehicles. The Chinese electric vehicle market is the biggest in the world and according to Lai China’s demand for ‘new energy vehicles’ will quadruple by 2025. Tesla has also placed a huge emphasis on the growing Chinese market.
- NIO is a Shanghai-based electric vehicle maker.
- The company is backed by Chinese giants Tencent and Baidu and also has state-backed investors.
- The stock has received upgrades from JP Morgan, Citigroup and others.
- NIO’s share price is up around 600% year to date.
Did you know that you can invest in shares of NIO through an Invest.MT5 account? This account only requires €1 to open and investing fees start at just $0.01 per share with minimum transaction fees of just $1 on US stocks! There are also zero account maintenance fees!
How to invest in NIO shares with Admiral Markets UK Ltd
To get started, follow these five simple steps:
- Log in to your Invest.MT5 account which can be opened in a few minutes here.
- Click Trade on your chosen account which will direct you to the Admiral Markets MetaTrader Web Platform.
- Type in NIO at the bottom of the Market Watch search box and then drag the symbol onto the chart.
- Use the one-click trading feature on the chart or right-click on select Trading -> New Order.
- Choose your entry, stop loss and target levels and position size (volume) and then confirm the trade.
Source: Admiral Markets MetaTrader 5 Web, NIO, Daily – Data range: Jun 18, 2019, to Oct 16, 2020, performed on Oct 16, 2020, at 7:09 am BST. Please note: Past performance is not a reliable indicator of future results.
This stock first listed in September 2018, and ended 2019 down -36.89%.
Did you know that you can open a free demo trading account to test your trading ideas and theories regarding the price direction of thousands of markets in a virtual trading environment? Open your free account today by clicking on the banner below and receive free access to Premium Analytic tools and more!
INFORMATION ABOUT ANALYTICAL MATERIALS:
The given data provides additional information regarding all analysis, estimates, prognosis, forecasts, market reviews, weekly outlooks or other similar assessments or information (hereinafter “Analysis”) published on the website of Admiral Markets. Before making any investment decisions please pay close attention to the following:
1.This is a marketing communication. The content is published for informative purposes only and is in no way to be construed as investment advice or recommendation. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research, and that it is not subject to any prohibition on dealing ahead of the dissemination of investment research.
2.Any investment decision is made by each client alone whereas Admiral Markets UK Ltd (Admiral Markets) shall not be responsible for any loss or damage arising from any such decision, whether or not based on the content.
3.With a view to protecting the interests of our clients and the objectivity of the Analysis, Admiral Markets has established relevant internal procedures for prevention and management of conflicts of interest.
4.The Analysis is prepared by an independent analyst Jitan Solanki, Freelance Contributor (hereinafter “Author”) based on personal estimations.
5.Whilst every reasonable effort is taken to ensure that all sources of the content are reliable and that all information is presented, as much as possible, in an understandable, timely, precise and complete manner, Admiral Markets does not guarantee the accuracy or completeness of any information contained within the Analysis.
6.Any kind of past or modelled performance of financial instruments indicated within the content should not be construed as an express or implied promise, guarantee or implication by Admiral Markets for any future performance. The value of the financial instrument may both increase and decrease and the preservation of the asset value is not guaranteed.
7.Leveraged products (including contracts for difference) are speculative in nature and may result in losses or profit. Before you start trading, please ensure that you fully understand the risks involved.