JPMorgan Upgrades NIO Stock with 22% Upside Target Ahead of Key Catalysts

JPMorgan analyst Nick Lai has upgraded Chinese EV Maker Nio Inc. (NIO) to Buy from Hold, raising the price target to $8—a 22% upside from current levels. This marks Lai’s second bullish adjustment in less than two weeks, signaling growing confidence in the stock’s near-term trajectory. NIO shares were also added to the firm’s 'positive catalyst watch,' reflecting anticipated momentum from upcoming events.

The upgrade hinges on three critical milestones: NIO’s Q2 earnings report on September 2, where margin recovery and delivery trends will be scrutinized; the annual 'Nio Day' in late September, expected to reveal pricing for the new ES8 model; and the Guangzhou Auto Show in November, likely to showcase the company’s next-generation offerings. These events could reignite investor enthusiasm after a challenging first half of 2024.

Lai’s revised outlook underscores a broader shift in sentiment toward NIO, which has faced headwinds from supply chain disruptions and competitive pressures. The stock’s performance in the coming months may serve as a bellwether for China’s EV sector, where innovation and pricing power remain key battlegrounds.