US listed Chinese electric vehicle manufacturers are the biggest potential winners, according to Citigroup, which weighed in on Wednesday.
City analyst Jeff Chung raised his NIO (ticker: NIO) price target from $ 33.60 to $ 33.20, keeping his rating on the stock. The target is the highest on Wall Street and 31% above the closing price of $ 35.50 on Tuesday.
NIO stock was up about 6% in premarket trading, its stunning year-to-date gain. The stock was up 780% in 2020, after closing on Tuesday.
Chung also launched coverage of Li Auto (LI) and Xpeng (XPEV). He rates Lee Hold and has a $ 27 price target on the shares. This is about 12% higher than recent levels.
He rates Xpeng in Buy and has a $ 34.70 price target for the shares. This is about 56% higher than recent levels.
Chung’s ideas closely connect with those of his peers. Xpeng, overall, appears to be Street’s favorite Chinese EV stock. Above a 58% average buy-rating ratio for a stock in the Dow Jones Industrial Average, about 85% of analysts have bought it in stock. Analysts’ average target for the share price is around $ 26, about 20% above recent levels.
More than 60% of analysts buy NIO shares, while the comparable figure for Lee Auto is a 78% buy-rating ratio. But the average analyst price target for NIO stock means around 15%, while the implied profit for Lee Auto stock is less than 10%. Analysts see more upside than N shares in NIO stock.
It is clear that analysts still like the Chinese EV sector given how much the stock has gained this year. EV Stock Baron’s The tracks are over 360% so far in 2020.
Over the past month, EV stocks are up 1.3% on average compared to a small comparative decline
And the Dow Jones Industrial Average.
But the group’s performance varies widely over the past month. For example the EV trucking stock Hyliion (HLYN) stock is down more than 50%, while NIO shares have risen by more than 60%. Business has been wild.
The NIO is the largest of the three publicly traded Chinese EV players. It delivered more than 5,000 vehicles in October. Xpeng distributed just over 3,000 EVs. Lee Auto, for its part, delivered 3,692 vehicles.