Chinese electric car brand Nio is in the middle of a big turnaround that can push the stock up as much as 28%, according to Deutsche Bank. Analyst Edison Yu was impressed by the jump in deliveries last month as well as its improved operations. Nio said its July deliveries totaled 20,462, up 103.6% year-on-year and nearly double the June figure of 10,707 cars. Nio’s figures were helped by the release of the refreshed ES6 SUV, known as the All-New ES6, which was launched in May. “NIO’s operational execution has improved significantly in the past quarter with new models ramping quickly and sales efficiency improving,” Yu said in a note. “July saw record monthly deliveries and the order book should be healthy for the next few quarters driven mainly by ES6.” Shares of the Chinese company have rebounded 35% this year after losing nearly 70% in 2022. Deutsche Bank expects the company can continue the rally amid the increase in unit sales as well as gross margin. The analyst reiterated his buy rating and raised his 12-month price target by $4 to $17, which is 28.3% higher than Thursday’s close of $13.25. “We think the stock can finally recapture momentum after being a relative laggard all year and also see some small potential for strategic optionality,” Yu said. Back in 2019, the startup had teetered on the brink of bankruptcy until it received a lifeline of about $1 billion from local investors , including state-backed entities. In late June, Nio announced a roughly $700 million injection from an Abu Dhabi investor. In June, Nio cut prices for its cars by the equivalent of $4,200. — CNBC’s Michael Bloom and Evelyn Cheng contributed reporting.
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