NIO shorts have been covering in size during the recent continuation of its rally, with 14 million shares covered over the last month worth $394 million, according to data from S3 Partners.
Most of the buy-to-covers occurred over the last week with 10.6 million shares covered as NIO’s stock price rose +31%, the data showed.
(Table from S3 Partners)
During the past week, analysts were publishing bullish views on NIO.
On October 14, JP Morgan analysts led by Nick Lai raised their price target on NIO sharply to $40 from $14, saying, "we missed the stock's major rally YTD."
JP Morgan sharply raises NIO price target to $40, representing 85% upside potential
NIO shares closed at $21.62 the previous day, and JP Morgan's price target means NIO has 85% upside potential.
On October 15, Citi analyst Jeff Chung upgraded the stock rating of Chinese EV maker NIO (NYSE: NIO) from "Neutral" to "Buy" with a price target of $33.20 from $18.10.
The analyst raised expectations for the company's delivery volume and margins, as well as the stock's valuation multiplier.
On October 18, Zhongtai Securities analyst Su Chen said NIO's new model, the EC6, which was delivered from September 2020, is expected to maintain good delivery volumes through a richer product portfolio and a competitive edge in the product race.
According to the analyst, NIO has gained a strong foothold and is gaining ground in the market with continuous technology iterations, improved battery range, and superior service, as deliveries continue to increase.
On October 19, Deutsche Bank analyst Edison Yu noted that there aren't any specific factors driving the stock higher, but he points to a couple of developments that have helped keep the momentum going.
