It’s time to bet again on shares of electric vehicle maker Nio , according to Bank of America. Analyst Ming Hsun Lee upgraded Nio to buy from neutral, citing better sales, improved margins during the second half of the year and an attractive valuation. “We like NIO for its (1) advantages in the premium smart EV segment, (2) solid volume sales back by continuous new model launch to help share gain, (3) focus on autonomous driving, powertrain, and charging solution to enhance user experience,” Lee wrote. Among the reasons for liking the stock, Lee also cited waning concerns toward American depositary receipts and recovering supply chains. ADRs, which constitute shares of non-U.S. companies traded on U.S. exchanges, have recently come under scrutiny as delisting and regulatory fears grow. Simultaneously, Nio has also faced production shutdowns amid Covid-19 lockdowns in China and concerns over its price hikes as raw material costs rise and supply chain issues persist. Despite these issues, Lee likes Nio’s strong product offerings, which continue to ramp up shipping and deliveries. Waiting times for some models also suggest “ample orders on hand,” Lee wrote. Along with the upgrade, Bank of America raised its price target to $26 a share, which represents a potential 81.7% upside from Friday’s close price. Shares of Nio have plummeted nearly 55% in 2022. — CNBC’s Michael Bloom contributed reporting
